COA Annual Audit Report 2012 - Iligan City
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Republic of the Philippines
COMMISSION ON AUDIT
OFFICE OF THE REGIONAL DIRECTORRegional Office No. X
Cagayan de Oro City
May 15, 2013
Honorable Lawrence Ll. Cruz
City MayorIligan City
Sir:
We are pleased to transmit the Annual Audit Report (AAR) on the audit of the
accounts and operations of the City of Iligan for the year ended December 31, 2012, incompliance with Article IX-D of the Philippine Constitution and pertinent provisions of
Section 43 of Presidential Decree No. 1445.
The AAR contains results of the audit, which was primarily conducted toascertain the propriety of financial transactions and compliance of the city with laws and
regulations. The financial and compliance audit, which was conducted on a test basis,was primarily focused on the validity and propriety of transactions as well as the fairness
in the presentation of the financial statements. The details of these results, which included positive and negative audit observations, as well as, the corresponding recommendations,
are discussed in the report.
We request that the recommendations be implemented and we would appreciate being informed of the action taken hereon within one month from receipt hereof.
We acknowledge the cooperation extended to our Auditors by the officials and
employees of the City Government of Iligan.
Very truly yours,
By Authority of the Chairman:
Director IVRegional Director
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Copy Furnished:
The Honorable Members of the Sangguniang Panlungsod
Thru: The Secretary, Sangguniang Panlungsod
Iligan City
The Regional Director
Department of Interior and Local GovernmentRegional Office No. X
Cagayan de Oro City
The Regional DirectorBureau of Local Government Finance
Regional Office No. XCagayan de Oro City
The Regional Director
Department of Budget and ManagementRegional Office No. X
Cagayan de Oro City
The Regional Director National Economic Development Authority
Regional Office No. XCagayan de Oro City
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Republic of the Philippines
COMMISSION ON AUDIT
Regional Office X
Audit Group G Iligan City
Office of the Supervising Auditor
April 30, 2013
LYNN S.F. SICANGCO Director IV
Regional DirectorCOA Regional Office No. X
Cagayan de Oro City
Madam:
In compliance with Section 2, Article IX-D of the Philippine Constitution andSection 43 of the Government Auditing Code of the Philippines (PD) 1445, we have
audited the Annual Audit Report (AAR) on the City of Iligan for the year endedDecember 31, 2012.
The audit was conducted to ascertain the propriety of financial transactions and
the extent of compliance by the city with laws and regulations. It was also made toascertain the accuracy of financial records and reports, as well as the fairness in the
presentation of accounts in the financial statements.
The report consists of four parts, Part I contains Audited Financial Statements,Part II - Detailed Findings and Recommendations, Part III - the Status of Prior Year’s
Audit Recommendations, and Part IV – Annexes. The audit findings andrecommendations were discussed with concerned management officials and staffs in an
exit conference held on April 2, 2013.
We rendered a qualified opinion on the fairness of the presentation of thefinancial statements as of December 31, 2012, for reasons discussed in the report.
Our audit was conducted in accordance with the generally accepted state auditing
standards and we believe that it provides reasonable basis for the results of the audit.
Very truly yours,
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i
EXECUTIVE SUMMARY
Highlights of Financial Operations
A. Financial Condition
As of December 31, 2012, the consolidated financial condition of the City,excluding Barangays, showed a total asset of P4.798 billion, total liabilities of 2.046
billion and equity of P2.752 billion.
Particulars CY 2012 CY 2011 Increase (Decrease)
Amount Percent
Assets 4,798.310 4,529.260 269.050 5.61
Liabilities 2,046.485 1,889.536 156.949 7.67
Government Equity 2,751.825 2,639.724 112.101 4.07
B. Results of Operations
Total income derived from all sources amounted to P1.124 billion while expenses
incurred amounted to P958.659 million resulting to a net income of P138.755 million:
Particulars CY 2012 CY 2011Increase (Decrease)
Amount Percent
Total Income1,124.252 P 1,232.596 (108.344) (.0879)
Total Expenses 958.659 915.507 43.152 4.713
Net Operating Income 165.593 317.089 151.496 (47.78)Less: Subsidies 26.837 26.872 35 .0013
Net Income 138.755 290.217 151.462 (52.19)
C. Cash Flows
The Consolidated Statement of Cash Flow indicated total cash available of
P3,004,558 B and total cash outflows of P1,579,41B leaving a cash balance ofP1,425,143 B:
Particulars CY 2012 CY 2011
Beginning Balance 1,288.319 578.212Cash Inflows 1,716.239 2,138.717
Total Available 3,004.558 2,716.929
Cash Outflows 1,579.415 1,428.610
Cash balance, end of year 1,425.143 P1,288.319
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Scope of Audit
The audit covered the accounts and operations of the City Government of Iliganfor the period January 1 to December 31, 2012. The audit was undertaken to ascertain the
fairness in the presentation of the financial statements and adherence to prescribe laws,
rules and regulations, and whether programs, activities and projects were carried out in aneconomical, effective and efficient manner.
Audit Opinion on the Financial Statements
The Auditor rendered a qualified opinion on the fairness of presentation of the
financial statements due to the effects of the noted deficiencies on the balances of someaccounts as discussed in detail in Part II of this report.
Significant Findings and Recommendations
The Department of Interior and Local Government (DILG) – National CapitalRegion thru the “Seal of Good Housekeeping Program” issued the certificate to the City
of Iligan in recognition of its efforts in advancing the principles of accountability andtransparency in local governance for Calendar Year 2011.
It is also worth mentioning that management had provided the required budget and
implemented the programs and activities under Gender and Development. They had alsocomplied with all tax regulations.
The following, however, are some of the deficiencies noted, with the
corresponding recommendations, in the audit of the accounts and transactions of the citygovernment for the year 2012:
A. Financial and Compliance
1. The financial report of the City government showed Property, Plant and
Equipment (PPE) accounts with book value of P 2,419,907,918.52. The amount,
consisting of movable properties issued to the various city department offices of
P609,251,454.10 and immovable properties of P1,810,656,464.42, could not
however, be validated because the physical inventory report which could be our
basis to match the properties by classification and their corresponding amounts
was not submitted to the Commission (COA) as required under Section 122 of
Presidential Decree (PD) No. 1445.
i. Create an Inventory Committee to conduct the physical count of the properties
of the City government (All Funds) including acquired and donated land. Afterwhich, the Committee should come up with the Report on the Physical Count of
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ii. The driver’s trip ticket should be serially numbered. In this case the CityGeneral Services Office/ shall provide or make available to all
department/office the driver’s trip ticket with control number or serial number;
iii. No motor vehicle should be allowed to depart from the office without the
driver’s trip ticket duly approved by the department/office head or the Assistantdepartment head or the officer in-charge, in the absence of the former. Employees using the motor vehicle during office hours should support copy of
their locator slip or pass-out slip duly approved by the department/office heador his authorized representative stating therein the purpose and place to be
visited in the driver’s trip ticket and must sign the driver/s trip ticket in theauthorized passenger(s);
iv. All requisition slip or withdrawal slip should be issued in chronological
sequence or consecutively duly sign by the approving official on the driver’strip ticket or his authorized representative;
v. Install speedometer/odometer in all motor vehicles to replace dilapidated one.
Show odometer reading during the beginning or end of the official travel/trip inthe driver’s trip ticket to determine the actual f uel consumed during the travel;
vi. All motor vehicle shall be parked/ kept in the garage or at the office. The
practice of allowing the driver’s particularly casual’s/job order worker to bringthe motor vehicle in their residence is strictly prohibited. Department/office
head is reminded of their responsibility and accountability for all government properties;
vii. Fetching of official/employee from residence to office and vice versa including
the use thereof of the members of the family of the official/employee anddriver’s even if they are riding with such official/ employee /driver is strictly
prohibited; and
viii. Within 10 days from the end of the month, the driver through theirdepartment/office head shall submit the monthly fuel consumption report
together with the original copy of the driver’s trip ticket to the office of the City Auditor for audit purpose.
4. Some government motor vehicles of the City were not marked “For Official Use
Only”, while the necessity of issuing more than one motor vehicle to a city
department/office was not evaluated, and further, city officials whose
department/office were assigned with motor vehicle/s still collect transportation
allowance, thus, defeating the regulations on the proper use of government
vehicles and entitlement of transportation allowance.
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i. Require the City General Services Office to see to it that all government motorvehicles including heavy equipment, transportation equipment and motorcycles
shall be plainly marked “ FOR OFFICIAL USE ONLY” in accordance withthe specification provide for and must bear government plate pursuant to COA
Circular No. 75-6 dated November 6, 1975.
ii. Require the department/office head concerned to submit justification on providing gasoline & oil to assign or issue motor vehicle to them without
marking “FOR OFFICIAL USE ONLY” when these are strictly prohibited.
iii. The City government should provide a garage for the safekeeping of all government motor vehicles after office hours, during Saturdays, Sundays &
holidays.
iv. Require the local finance committee (LFC) shall evaluate the necessity of therequest of department/office heads for acquisition of new vehicle taking into
consideration the function of the department/office.
v. Create a Task Force Committee to conduct study or evaluate the necessity of
the number of motor vehicles and motor cycles assigned or issued to thedepartment/office. After evaluation, motor vehicles and motorcycles no longer
needed by the department/office or custodian thereof shall be disposed of inaccordance with the rules and regulations on the matter. On motor cycle, the
functions of the office and the statement of duties and responsibilities of thecustodian thereof must be taken into consideration.
vi. Require the officials whose offices are issued with motor vehicles, whether or
not they actually used such vehicles, to refund the RATA, pursuant to COACircular No. 99-002 dated June 15, 1999.
5. Funds transferred to NGOs/POs amounting to P7,290,263.78 remained
unliquidated as of the year-end contrary to Section 5.4 of COA Circular No.
2007-001. Part of the amount equivalent to 44.16% or P3,219,137.45 were
misclassified as such and likewise failed to liquidate the financial assistance
given.
i. Direct the City Accountant to demand immediate liquidation of fundtransferred to NGOs/POs. Render report for those who cannot submit
liquidation to the City Mayor and the appropriate committee in theSangguniang Panlungsod for the adoption of appropriate measures to protect
the interest of the city government.
ii. To safeguard fund transferred to NGOs/POs, the accountant and the focal person in the implementation of the project should conduct pre-briefing seminar
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on the reporting of the utilization of the fund and in the implementation projectbefore fund releases.
iii. Strictly follow the guidelines stated under COA Circular NO. 2007-01 dated
October 25, 2007 on the grant of government funds to NGOs/POs.
iv. Reclassify the accounts of other groups/association.
6. Despite having an existing unliquidated funds of P25,216,305.78 out of prior
year releases, the City still released the sum of P27,387,668.00 for barangay
development projects in violation of COA Circular No. 94-013 and the covering
Memorandum of Agreement (MOA).
i. Require the barangays the submission of their statement of expenditures of the previous funds as a prerequisite to the next release pursuant to the provisions of
COA Circular N0. 94-013 and the MOA.
ii. The City Accountant should see to it that issue demand letters to the Punong Barangay/Barangay Treasurer for the submission of the required report to
liquidate the fund transfer.
iii. The City Accountant’s representative and the barangay record keepers should sit together quarterly for the reconciliation of their accounts to identify the
reconciling items and to record immediately the adjustments concluded;
iv. The Office of the ABC President shall provide the SA the status of the project’simplementation for the latter to validate the completion of the projects and
determine whether the IA implement the projects in accordance with the MOA.
7. Barangay Development Projects amounting to P2,826,900 which was
implemented through Executive Order and Memorandum of Agreement
(MOA) lacks the authority from the Sangguniang Panglunsod as required under
Section 22(c) of RA No. 7160.
i. The local chief executive shall strictly observe the requirement under Section22 (c) of the Local Government Code (RA No. 7160) before entering contract
specifically when he appropriation ordinance describe the project in the genericterms or the purchase of goods and services not specified in the appropriation
ordinance or part of the regular personal services and maintenance and otheroperating expenses.
ii. Submit the approved SP Resolution for entering MOA with the individual
barangay official of the recipient barangay.
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iii. The city accountant to see to it that contract or MOA entered into by the localchief executive in behalf of the city government is supported with SP Resolution
approving the contract or MOA.
8. Grant of Instructional Materials Allowance to Nationally Paid Secondaryand Elementary School Teachers.
i. The Local School Board should stop appropriating additional allowance tonationally paid elementary and secondary public school teachers assigned or
stationed in the City; and
ii. Although its not mandatory, the City Schools Division Superintendent may askor request from the city government to provide additional allowances to
elementary and secondary public school teachers assigned or stationed in theCity.
9. Contractor for the delivery of foodstuff for the first 30 days supplemental
feeding program under the early childhood care & development was paid in full
of the contract price of P1,998,155.00 despite no complete delivery was made by
the contractor as of the date of payment contrary to Section 88, P.D. 1445.
i. Delivery of foodstuff for the supplemental feeding program should be made a
day before and /or three days before the schedule feeding program for day carecenters located within the city limits or coastal areas and hinterland barangays,
respectively, to sustain the nutrients of the foodstuff.
ii. Payment to contractor should be based on the actual delivery or as a billed bythe contractor whichever is appropriate.
Value for Money Audit:
10. Infrastructure projects funded under the Kilos Asenso Support (KAS) Fund in
the amount of P6,301,363.00 received by the City Government from the
Department of Budget & Management remained intact since CY 2009 was not
implemented thus the desire social benefits were not attained.
Notwithstanding the actions taken on this regard, we recommend the followingcourses of action:
i. expedite the preparation of the individual program of work and coordinate withthe recipient barangay for the clearing operations for the project site;
ii. instruct the local finance committee (LCF) shall ensure the allocation of the
necessary counterpart fund from the 20% IRA for development projects;
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iii. the City shall strictly abide with the DBM Circular in the utilization and
implementation of the projects programmed from the KAS Fund; and
iv. in case the projects will not be implemented during the year the CGI shall
return the KAS fund to the national government through the National Treasury.
11. The required five days a week supplemental feeding program for 120 days was
not implemented thus the expected output to improve the nutritional status of
the target children was not sustained.
i. The implementer agency should adopt the required five (5) days a week supplementary feeding program and prepare separate schedule for
supplementary feeding program for day care centers located in the coastalareas and hinterland barangays
ii. The delivery period for foodstuff should be made a day before the schedule
feeding program for five (5) days consumption.
iii. Day care workers should conduct constant dialogue with the organized parentsinforming them the objectives of the program and the fund release is limited to
the official list submitted to the FO.
iv. Account for the excess children from the official list submitted per day carecenters and present with the city government for providing the appropriate fund
needed as a local counterpart fund to the program.
F. Status of Implementation of Prior Year’s Audit Recommendations
Of the thirty-two (32) prior years’ audit recommendations, 28% or 9 were fullyimplemented, 28% or 9 were partially implemented and 44% or 14 were not
implemented.
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TABLE OF CONTENTS
Part Subject Page
I AUDITED FINANCIAL STATEMENTS
Independent Auditor’s Report
Statement of Management’s Responsibility for FinancialFinancial Statements
Financial Statements
Consolidated Balance Sheet. Consolidated Statement of Income and Expenses
Consolidated Statement of Cash Flows Consolidated Notes to Financial Statements
II DETAILED FINDINGS & RECOMMENDATIONS
Financial and Compliance Audit
Value for Money Audit
III STATUS OF IMPLEMENTATION OF PRIOR YEAR’S
AUDIT RECOMMENDATIONS
IV ANNEXES
Consolidated Balance Sheet (by Fund)
Consolidated Income Statement (by Fund)
Consolidated Statement of Cash Flows (by Fund)
Status of Appropriations, Allotment and Obligations (8pp)
Statement of Appropriations, Allotments, Obligations andBalances – General Fund (2pp)
Statement of Appropriations, Allotments, Obligation andBalances – Special Education Fund
Statement of Appropriations, Allotments, Obligation andBalances – 20% Development Fund
Statement of Appropriations, Allotments, Obligation andBalances – 20% Development Fund – ContinuingAppropriations (2pp)
1
2
35
68
2346
51
97
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Republic of the Philippines
COMMISSION ON AUDIT
Office of the Regional Director
Regional Off ice No. 10
Cagayan de Oro City
INDEPENDENT AUDITOR’S REPORT
HONORABLE LAWRENCE LL. CRUZ
City Mayor
Iligan City
We were mandated by the 1987 Philippine Constitution to audit the accompanyingfinancial statements of the City of Iligan which comprise the Balance Sheet as of
December 31, 2012 and the related Statements of Income and Expenses and Cash Flowsfor the year then ended and a summary of significant accounting policies and other
explanatory notes.
Management’s Responsibility for Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the Philippinesand for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether dueto fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with Philippine Standards on Auditing.These standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making these risk assessments, the auditorconsiders internal control relevant of the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. An audit also includes evaluating the appropriateness of
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accounting policies used by management, as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our qualified opinion.
Bases for Qualified Opinion
As discussed in Part II of the Report, the reliability of the book value of Property, Plantand Equipment (PPE) accounts totaling P2,419.908 billion could not be validated due to
the absence of the Report of Physical Count of Property, Plant and Equipment(RPCPPE). Likewise, the book balances of the inventory accounts for P4,780,620 could
not be also validated due the absence of the Report of Physical Count of Inventories(RPCI). Of the said amount three inventory accounts totaling P3,150,860 have become
dormant, thus rendering the inventory account doubtful.
Also, funds transferred to LGUs (Barangays), and NGOs/POs, totaling P88,396.13remained unliquidated as of December 31, 2012, contrary to existing rules and
regulations and which resulted to the overstatement of the asset account andunderstatement of the corresponding expense accounts.
Qualified Opinion
In our opinion, except for the effects of the matter discussed in the Bases for Qualified
Opinion paragraphs, the financial statements present fairly in all material respects, thefinancial position of the City of Iligan as of December 31, 2012, and the results of its
operation and cash flows for the year then ended in accordance with generally acceptedaccounting principles in the Philippines.
COMMISSION ON AUDIT
By:
May 15, 2013
April 30, 2013
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Republic of the Philippines
CITY OF ILIGAN
OFFICE OF THE CITYMAYOR
STATEMENT OF MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
The Management of the CITY GOVERNMENT OF ILIGAN is responsible
for all information and representation contained in the Consolidated Balance sheet as ofDecember 31, 2012 and the related Consolidated Statement of Income and Expenses and
Statement of Cash Flows for the period ended. The financial statements have been prepared in conformity with generally accepted accounting principles and reflect amounts
that are based on best estimates and informed judgment of management with anappropriate consideration of materiality.
In this regard, management maintains a system of accounting and reporting which
provides for the necessary internal controls to ensure that transactions are properlyauthorized and recorded, assets are safeguarded against unauthorized use or disposition
and liabilities recognized.
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Republic of the Philippines
CITY GOVERNMENT OF ILIGAN
CONSOLIDATED BALANCE SHEET
As of December 31, 2012
(With Comparative Figures for 2011)
2012 2011
ASSETS
Current Assets:
Cash, ( Note 3) 1,425,142,485.61 1,288,318,945.11
Receivables, (Note 4) 876,890,017.26 1,001,635,179.76
Inventories, (Note 5) 4,780,620.07 4,706,104.00
Prepayments, (Note 6) 33,186,611.14 33,738,887.97Other Current Assets 80,000.00 80,000.00
Total Current Assets 2,340,079,734.08 2,328,479,116.84
Investments:
Investments in Securities, (Note 7) 6,000,000.00 6,000,000.00
Total Investments 6,000,000.00 6,000,000.00
Property, Plant & Equipment (Net of Depreciation)
Land and Land Improvements 346,567,852.99 326,428,216.33
Buildings 487,627,681.89 494,274,491.27
Leasehold Improvements 2,486,484.71 2,486,484.71
Office Equipment, Furniture and Fixtures 122,702,668.51 123,795,673.43Machineries and Equipment 140,157,664.28 134,533,534.45
Transportation Equipment 82,478,672.49 93,009,220.21
Other Property, Plant and Equipment 263,912,448.82 264,446,255.12
Public Infrastructures 170,264,101.70 170,264,101.70
Reforestation Projects 49,500.00 49,500.00
Construction in Progress 803,660,843.13 553,298,024.49Total Property, Plant andEquipment, ( Note 8) 2,419,907,918.52 2,162,585,501.71
Other Assets, (Note 9) 32,322,220.49 32,195,520.49
TOTAL ASSETS 4,798,309,873.09 4,529,260,139.04
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LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities, (Note 10) 602,008,218.51 662,995,470.11
Long-Term Liabilities,( Note 11) 677,866,248.46 337,168,765.41
Deferred Credits, (Note 12) 766,610,108.19 889,371,435.96
Total Liabilities 2,046,484,575.16 1,889,535,671.48
EQUITY
Government Equity, Beg. 2,639,724,467.56 2,365,710,745.84
Add/Deduct:
Retained Operating Surplus 138,755,033.23 290,216,706.22
Prior Year's Adjustments (19,897,801.72) 3,071,726.47
Transfers to Registry (6,756,401.14) (19,274,710.97)
Government Equity, End (Note 13) 2,751,825,297.93 2,639,724,467.56
TOTAL LIABILITIES AND EQUITY 4,798,309,873.09 4,529,260,139.04
See Accompanying Notes to Financial Statements
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Republic of the Philippines
CITY GOVERNMENT OF ILIGAN
CONSOLIDATED STATEMENT OF INCOME AND EXPENSES
For the year December 31, 2012
(With Comparative Figures for CY 2011)
2012 2011
INCOME, ( Note 14)
Local Taxes 237,425,951.70 231,642,149.73
Internal Revenue Allotment 732,393,920.00 853,673,770.00
Permits and Licenses 8,017,002.38 8,167,651.62
Service Income 16,108,122.04 16,985,799.03
Business Income 98,749,478.64 90,174,625.70
Other Income 31,557,528.08 31,951,729.05Total Income 1,124,252,002.84 1,232,595,725.13
Less: EXPENSES, (Note 15)
Personal Services 521,713,700.10 490,794,856.47Maintenance and Other Operating
Expenses 394,943,156.08 394,069,044.29
Financial Expenses 42,002,453.25 30,643,124.10
Total Expenses 958,659,309.43 915,507,024.86
NET OPERATING INCOME 165,592,693.41 317,088,700.27
Add: Subsidies to Other Funds 44,500,000.00 65,630,770.06
Total 210,092,693.41 382,719,470.33Less: Subsidies to Other LGUs 6,352,964.00 6,483,816.00
Subsidies to NGO's/PO's 7,971,720.33 7,711,993.42
Subsidies to Other Funds 44,500,000.00 66,830,770.06
Subsidies to NGA's
Donations 12,512,975.85 11,476,184.63
Total 71,337,660.18 95,502,764.11
NET INCOME 138,755,033.23 290,216,706.22
See Accompanying Notes to Financial Statements
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Republic of the Philippines
CITY GOVERNMENT OF ILIGAN
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended December 31, 2012
(With Comparative Figures for 2011)
2012 2011
Cash Flows from Operating Activities
Cash Inflows:
Share from Internal RevenueCollections 732,393,920.00 853,673,770.00
Collection from Taxpayers 374,958,690.05 360,483,134.93
Receipts from Sale of Good andServices 14,487,520.38 13,099,014.23
Interest Income 5,433,907.11 5,443,666.31
Other Receipts 133,699,775.65 718,814,417.97
Total Cash Inflows 1,260,973,813.19 1,951,514,003.44
Cash Outflows:
Payments:
To Suppliers/Creditors 280,837,760.48 364,095,613.65
To Employees 708,317,570.31 663,395,528.18
Interest Expense 40,797,838.91 30,309,341.82
Other Disbursements 403,148,903.19 235,985,012.53
Total Cash Outflows 1,433,102,072.89 1,293,785,496.18Net Cash Operating Activities (172,128,259.70) 657,728,507.26
Cash Flows from Investing Activities:
Cash Inflows:
Sale of Property, Plant and Equipment 0.00 0.00
Sale of Debt Securities of OtherEntities 0.00 0.00
Collection of Principal on Loans toOther Entities 0.00 0.00
Total Cash Inflows 0.00 0.00
Cash Outflows:Purchase Property, Plant & Equipment
and
Public Infrastructures 31,745,682.85 22,186,760.89Purchase Debt Securities of Other
Entities 0.00
Grant/Loans to Other Entities 0.00
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Total Cash Outflows 31,745,682.85 22,186,760.89
Net Cash from Investing Activities (31,745,682.85) (22,186,760.89)
Cash Flows from Financing Activities
Cash Inflows:
Issuance of Debt Securities 0.00
Acquisition of Loan 455,265,650.98 187,203,218.73
Total Cash Inflows 455,265,650.98 187,203,218.73
Cash Outflows:Retirement/Redemption of Debt
Securities 0.00
Payment of Loan Amortization 114,568,167.93 112,637,620.46
Total Cash Outflows (114,568,167.93) (112,637,620.46)
Net Cash from Financing Activities 340,697,483.05 74,565,598.27
Net Increase in Cash 136,823,540.50 710,107,344.64
Cash at Beginning of the Year 1,288,318,945.11 578,211,600.47
Cash at the End of the Period 1,425,142,485.61 1,288,318,945.11
See Accompanying Notes to Financial Statements
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Notes to Consolidated Financial Statements(With Comparative Figures for 2011)
Note 1: General Profile of the City Government of Iligan
1.1 Iligan became a chartered city through RA 525 on June 16, 1950 and on 19September 2001 the city was transferred from Region 12 to Region 10 byvirtue of EO No. 36. Based on national and regional development plans, Iligan
City is envisioned to be the industrial center in the Northern MindanaoGrowth Area and a sub-regional growth center for education, service and
recreation, among others. The city plays a key role in the development of theregion as it supplies most of the area’s electrical power. In addition, it has
great eco-tourism potential with the presence of a number of waterfalls andwater features. The influx of immigrants due to the city’s industrial boom in
the 1950s through the 1980s, coupled with its natural population growth,created a strain, not only in urban space, but also on the capacity of the local
government to deliver services and provide employment and livelihoodopportunities. To address urban social ills, the city aims to implement a
comprehensive human resource development approach that focuses oneducation and training; health, nutrition and socialized housing; and poverty
alleviation.
1.2 Iligan City has a land use plan and an area development framework, whichaim to locate public and community services strategically, to properly allocate
land towards sustainable development, and to rezone excess lands to allownew developments for socioeconomic ends. Iligan has a relatively adequate
transport system and is accessible from major Philippine cities through air,water, and land.
Note 2: Summary of Significant Accounting Policies
2.1 Basis of Financial Statements Presentation.
2.1.1 The statements have been prepared in accordance with generally
accepted state accounting principles and standards.
2.1.2 The consolidated financial statements consist of transactions from theGeneral Fund, Special Education Fund and Trust Fund.
2.2 Accounting Policies Observed for Each Account
2.2.1 The city uses accrual basis of accounting. All expenses are recognized
when incurred and reported in the financial statements in the period towhich they relate. Income is on accrual basis except for transactions
where accrual basis is impractical or when law requires other methods.
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2.2.2 Allowance for doubtful accounts are maintained at a level adequate to provide for potential uncollectibility of receivables. A review of the
receivables, designed to identify accounts to be provided withallowance is made on a regular basis.
2.2.3 The Modified Obligation System is used to record allotments receivedand obligations incurred. Separate registries are maintained to controlallotments and obligations for each class of allotment.
2.2.4 The costs of ending inventory of office supplies and materials and
other inventory items are computed using the Moving AverageMethod.
2.2.5 Supplies and materials purchased for the inventory purposes are
recorded using the Perpetual Inventory System.
2.2.6 Petty Cash Fund (PCF) account is maintained under the ImprestSystem. All replenishments are directly charged in the expense
account. The PCF is not used to purchase regular inventory items forstock.
2.2.7 Property Plant and Equipment are carried at cost less accumulated
depreciation.
2.2.8 Bonus paid to contractors for early completion of the work was addedto the total cost of the project while liquidated damages paid for by the
contractor for delayed completion of the project was deducted from the project cost.
2.2.9 For assets under construction, all related expenses incurred during the
construction of the project are capitalized and those incurred after theconstruction are charged against the operating cost.
2.2.10 The construction period theory shall also apply for expenditures on
infrastructure projects of the Trust Funds. For other projects,expenditures shall be debited to the appropriate expenditure account.
Expenditures shall be closed to Project Equity account at year-end orupon project completion, whichever comes first.
2.2.11 Properties of the government, which are used by the general public,
are accounted for under the Public Infrastructures/ReforestationProjects. These are dropped from Property, Plant & Equipment
account and recorded in the Registry of PublicInfrastructure/Reforestation Projects.
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2.2.12 Public Infrastructures/Reforestation Projects and serviceable assets notused in operation are not subject to depreciation.
2.2.13 The Straight Line Method of depreciation is used in depreciating the
Property, Plant & Equipment with estimated useful lives ranging from
five to fifty years. A residual value, computed at ten percent of the costof asset is set and depreciation starts on the second month after purchase.
2.2.14 Payable accounts are recognized and recorded in the books of accounts
only upon acceptance of the goods/inventory/other assets and renditionof services to the agency.
2.2.15 Accounts were again reclassified in conformity with the revised new
Chart of Accounts prescribed under COA Circular No. 2003-002 datedAugust 1, 2003.
2.2.16 Financial expenses such as bank charges are separately classified from
MOOE.
2.2.17 Transactions in foreign currencies are recorded in Philippine Peso based on the BSP rate of exchange prevailing at the date of
transactions.
2.2.18 Foreign currency denominated monetary assets and liabilities at balance sheet date is restated based on BSP exchange rate at the date.
Foreign exchange gains/losses are recognized in the books of accounts.
2.2.19 Fundamental errors of prior years are corrected by using the PriorYear’s Adjustment account. Errors affecting current year’s operation
are charged to the current year’s accounts.
Note 3: Cash and Cash in Banks P 1,425,142,485.61
Compositions of cash and cash in banks are as follows:
Account Title GF SEF TF CY 2012 PY 2011
Cash in Vault -
Cash-Disbursing
Officers9,184,598.28 1,461,119.62 3,664,276.38 14,309,994.28 17,067,637.14
Petty Cash Fund 130,371.05 130,371.05 133,243.40
Cash in Bank-LC,Current Acct.
761,200,063.49 21,737,027.21 401,129,679.19 1,184,066,769.89 1,048,090,538.97
Cash-Bank-LC,
Time Deposit187,743,971.39 23,022,967.86 15,868,411.14 226,635,350.39 223,027,525.60
Total 958,259,004.21 46,221,114.69 420,662,366.71 1,425,142,485.61 1,288,318,945.11
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• Total cash balances as of December 31, 2012 for allfunds amounted to P1,425,142,485.61, comprising the
General Fund, Special Education Fund and the Trust Fund,with an amount of P958,259,004.21 , P46,221,114.69
and P420,662,366.71 , respectively.
• Under the General Fund, a portion of the Cash in Bank – Current Accountsrepresenting BIR payments from Iligan City Water Supply System
Development Project in favor of RD Policarpio & Co., Inc. totalingP5,891,447.45. Said amount was paid under LBP CA No. 0322-1063-43 and
DBP CA No. 0820-016198-030, both Iligan City Government Account,instead of LBP CA No. 0322-1126-53 Iligan City Water Supply System
Development Project, subject for adjustment. Transactions submitted afterFebruary 13, 2012 were not included.
• Cash balances per books differ from bank due to outstanding checks, deposit-
in-transit and other reconciling items which are shown in detailed per BankReconciliation Reports.
• In connection with the city's approved term loan with Land Bank of the
Philippines-Iligan Branch with principal amount of P 445.50M and P 50Mequity on the development and expansion of Iligan City Water System
Project, additional releases in the following amount are as follows :P22,135,669.16; P25,725,128.73 ; P15,194,710.69 ; P9,409,563.99 ; and
P11,899,913.35, and P16,828,754.83, representing sixth, seventh, eighth,ninth, tenth and eleventh releases, respectively. Amount directly debited by
the bank as payment in favor of the Contractor and suppliers. Some billingsof the said project were not recorded due to insufficient documents needed for
proper recording.
Note 4: Receivables P 876,890,017.26
This account includes the following:
Account Title GF SEF TF CY 2012 PY 2011
Account Receivable -
Due from Officers &Employees
6,911,814.24 268,901.39 359,206.09 7,539,921.72 8,097,534.67
Loans Receivable,Others
7,918,226.61 1,579,841.16 9,498,067.77 8,690,848.20
Real Property TaxReceivable
407,679,602.52 407,679,602.52 471,856,200.59
Special Edu. TaxReceivable
350,144,763.22 350,144,763.22 408,755,365.54
Due from NGAs 6,397,110.19 6,397,110.19 6,397,110.19
Due from GOCC’s 1,285,000.00 1,285,000.00 1,285,000.00
Due from LGUs 81,105,870.66 81,105,870.66 81,888,862.75
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Account Title GF SEF TF CY 2012 PY 2011
Due from NGOs/POs 5,190,263.78 2,100,000.00 7,290,263.78 8,995,809.51
Due from other Funds 1,456,156.00 79,586.60 1,535,742.60 2,322,958.11
Receivables-Dis./Charges
4,231,728.34 41,763.18 4,273,491.52 3,198,423.34
Other Receivables 140,081.02 1.26 101.00 140,183.28 147,066.86
Total 522,315,853.36 352,555,429.05 2,018,734.85 876,890,017.26 1,001,635,179.76
• Total Receivables as of December 31, 2012 , P876,890,017.26 shows arapid decrease of P 124,745,162.50 against December 31, 2011 balance
of P 1,001,635,179.76 . Material amount of reductions from Due to Officersand Employees, RPT and SEF receivables, Due from NGAs and Due from
GOCCs and Due from Other Funds.
• Due from Officers and Employees , as of December 31,2012 reduces by P557,612.95 for all funds. Under the
General Fund and Special Education Fund total reduction amounted toP640,868.78 and P43,004.56, respectively, as a result of liquidations
submitted. While under the Trust Fund Account an increased of P126,260.39due to Cash Advances in travel.
• RPT and SEF Receivables of P407,679,602.52 and P350,144,763.22,
respectively represents the uncollected amounts due from taxpayers for basicreal property taxes and additional levy on real property taxes accruing to
General Fund and Special Education Fund for the year 2012. Subject foradjustments and reconciliation , due to some delinquent taxpayers which can
no longer be located, availment of tax amnesties, company's bankrupcy/disclosure, etc. pending submission of the complete records from
the City Treasurer's Office .
• Due from LGU’s of P81,105,870.66 represents barangay projects fundedfrom their barangay share on the 20% development fund of the city. Full
settlement/liquidatiions of all fully implemented and completed projectswere required. Increased in amount resulted from some projects not yet fully
completed when another fund transfer was made in less than a year. LGUswith no outstanding balances transferred funds from the city to there
respective barangay funds and failure of some LGUs to submitted properdocuments of completed projects to the office of the city accountant for
recording in the books of accounts.
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Note 5: Inventories P 4,780,620.07
This account consist of :
Account Title GF SEF TF CY 2012 PY 2011
Office Supplies Inventory 244,644.50 244,644.50 103,789.50Accountable Forms Inventory 748,150.67 748,150.67 141,076.19
Drugs and Medicine Inventory 791,211.90 791,211.90 791,211.90
Medical, Dental and Laboratory 636,965.00 636,965.00 488,305.00
Gasoline, Oil and Lubricants Inventory 822,073.41
Other Supplies Inventory 293,148.00 293,148.00 293,148.00
Spare Parts Inventory 2066,500.00 2066,500.00 2,066,500.00
Total 4,780,620.07 - - 4,780,620.07 4,706,104.00
• Total inventory items amounted to P 4,780,620.07, under the General Fund
Account only.
• Supplies and materials, gasoline, lubricant and oil were coursed thru
inventories upon acquisition and recorded directly the issuances as it isdirectly delivered to end user.
Note 6: Prepayments P 33,186,611.14
This account consists of:
Account Title GF SEF TF CY 2012 PY 2011Prepaid Insurance 1,146,581.79 1,146,581.79 1,146,581.79
Advances to Contractors 31,730,517.71 103,401.70 206,109.94 32,040,029.35 32,592,306.18
Total 32,877,099.50 103,401.70 206,109.94 33,186,611.14 33,738,887.97
• Under the General Fund, Special Education Fund and Trust Fund, total
prepayments for year 2012 amounted to P33,186,611.14 , while thetotal amount of all prepayments as of December 31, 2011
amounted to P33,738,887.97. Difference of P552,276.83, resulting fromthe recoupment of 15% mobilization of the Advances to Contractors.
Note 7: Long Term Investment P 6,000,000.00
• This represents Iligan City Government’s equity in the joint assistance
program of Landbank and Iligan City Government known as ”Share FinancingProgram for Cooperatives in Iligan City”. The objective of the program is to
make available to cooperatives in the City of Iligan financial assistance forincome generating projects.
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• The fund is deposited in a trust account with Landbank and the status of the
city’s investment and the balance of the city government equity, still forfurther verification on Landbank of the Philippines, subject for verification,
pending status from Landbank.
Note 8: Property, Plant and Equipment ( net ) P 2,419,907,918.52
This account consists of: (see attached table)
• Property, Plant and Equipment (net) in the total amount ofP2,419,907,918.52 comprises the General Fund, Special
Education Fund and Trust Fund amounting toP2,199,325,871.80, P168,004,456.81 and P52,577,589.91 , respectively.
• Another set of depreciable properties, set-up in the lump-sum appropriations
during the installation of the e-ngas program, were partially itemized,including its estimated useful life. Depreciation was computed using the
straight-line method, after deducting its residual value of ten percent (10%) ofthe acquisition cost. Prior - year's depreciation were recorded as prior-year's
adjustments while depreciation for the year were recorded as expense.
• A good number of completed public infrastructure projects and agency assetswere transferred to Registry on Public Infrastructure at year end per list of
completed projects as of December 31, 2012 submitted by the City Engineer'sOffice. These included completed projects of different barangays funded
from the 20% Development Fund Equal Sharing. Under the GeneralFund, Public Infrastructure Projects in the total amount of P6,756,401.14 was
transferred to Registry of Public Infrastructures. The Electrification, Power &Energy Structures balance is subject for review. The process of itemizing and
reconciling the records against the lumpsum appropriation are still on progress.
• Disposal/Dropping of Unserviceable Properties of Property, Plant and
Equipment duly recommended/considered dropped by COA were alreadydropped, as submitted by the City General Services Officer. Purchases of
heavy equipment, IT equipment, and other properties resulted to the increasein amount.
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operty, Plant and Equipment
CCOUNT TITLE
General Fund Special Education Fund Trust Fund CY 2012 PY 2011
Cost Accum. Dep. Net Cost Accum. Dep. Net CostAccum.
Dep.Net Cost Accum. Dep. Net Cost Accum. Dep. Net
d 329,061,409.28 329,061,409.28 8,946,883.05 8,946,883.05 3,608,600.00 3,608,600.00 341,616,892.33 - 341,616,892.33 319,738,509.73 0.00 319,738,
d Improvements 5,907,979.61 5,907,979.61 354,853.90 354,853.90 - 6,262,833.51 - 6,262,833.51 6,262,833.51 0.00 6,262,
trification, Powernergy Structures
1,571,312.15 3,330,605.65 (1,759,293.50) 807,914.15 360,493.50 447,420.65 - 2,379,226.30 3,691,099.15 (1,311,872.85) 2,348,497.90 1,921,624.81 426,
ce Buildings 176,251,499.61 4,244,837.49 172,006,662.12 110,268,050.05 16,540,207.50 93,727,842.55 - 286,519,549.66 20,785,044.99 265,734,504.67 286,516,174.24 18,570,322.95 267,945,
ool Buildings 26,099,335.15 26,099,335.15 6,444,647.64 573,038.81 5,871,608.83 - 32,543,982.79 573,038.81 31,970,943.98 31,584,405.28 541,070.76 31,043,
pitals & Health
ters6,266,077.49 50,812.15 6,215,265.34 - 2,640,664.48 7,240.47 2,633,424.01 8,906,741.97 58,052.62 8,848,689.35 8,459,824.48 8,575.81 8,451,
kets &ghterhouses
116,041,528.94 7,470,707.14 108,570,821.80 - - 116,041,528.94 7,470,707.14 108,570,821.80 115,931,136.23 3,598,837.76 112,332,
er Structures 61,870,903.92 4,238,867.53 57,632,036.39 132,367.28 18,916.57 113,450.71 14,831,391.95 74,156.96 14,757,234.99 76,834,663.15 4,331,941.06 72,502,722.09 76,748,175.44 2,246,417.12 74,501,
ehold
rovements, Land2,486,484.71 2,486,484.71 - - 2,486,484.71 - 2,486,484.71 2,486,484.71 0.00 2,486,
eholdrovements,dings
- - - - - - 0.00 0.00
ce Equipment 35,609,639.62 4,741,562.68 30,868,076.94 2 ,798,727.55 1,484,146.70 1,314,580.85 1,762,022.30 42,776.45 1,719,245.85 40,170,389.47 6,268,485.83 33,901,903.64 38,484,972.94 5,241,635.84 33,243,
niture & Fixtures 21,721,004.20 1,235,227.52 20,485,776.68 15,755,274.24 7,191,839.17 8,563,435.07 291,483.00 5,257.03 286,225.97 37,767,761.44 8,432,323.72 29,335,437.72 37,025,961.66 7,856,544.24 29,169,
quipment &ware
65,737,473.40 21,206,111.64 44,531,361.76 656,090.00 386,749.36 269,340.64 616,850.50 21,269.07 595,581.43 67,010,413.90 21,614,130.07 45,396,283.83 64,818,092.90 17,335,408.76 47,482,
ary Books 11,095,347.92 8,274,761.07 2,820,586.85 20,451,138.10 9,588,122.42 10,863,015.68 385,440.79 385,440.79 31,931,926.81 17,862,883.49 14,069,043.32 31,553,890.56 17,653,655.79 13,900,
hineries 254,321.00 114,444.45 139,876.55 344,016.09 154,807.25 189,208.84 - 598,337.09 269,251.70 329,085.39 598,337.09 269,251.70 329,
cultural, Fishery &stry Equipment
1,189,835.00 722,332.87 467,502.13 - 33,000.00 33,000.00 1,222,835.00 722,332.87 500,502.13 1,222,835.00 594,552.31 628,
mmunicationpment
12,188,708.90 5,611,834.67 6,576,874.23 47,013.29 21,156.00 25,857.29 - 12,235,722.19 5,632,990.67 6,602,731.52 12,154,568.19 5,292,545.12 6,862,
struction & Heavypment
125,083,101.47 17,944,556.85 107,138,544.62 - - 125,083,101.47 17,944,556.85 107,138,544.62 120,357,954.89 16,761,848.53 103,596,
fighting Equipmentccessories
3,712,050.94 887,204.18 2,824,846.76 28,890.00 18,572.15 10,317.85 - 3,740,940.94 905,776.33 2,835,164.61 1,402,641.74 780,379.07 622,
pital Equipment 8,355,109.75 2,938,159.64 5,416,950.11 - 55,000.00 1,237.50 53,762.50 8,410,109.75 2,939,397.14 5,470,712.61 7,841,609.75 2,251,621.61 5,589,
ical, Dental &oratory Equipment
8,441,651.60 1,786,591.33 6,655,060.27 - 65,000.00 975.00 64,025.00 8,506,651.60 1,787,566.33 6,719,085.27 7,802,361.60 1,316,284.15 6,486,
tary & Policepment
1,635,363.53 519,211.59 1,116,151.94 - - 1,635,363.53 519,211.59 1,116,151.94 1,404,563.53 470,605.59 933,
rt Equipment 1,932,292.00 898,530.56 1,033,761.44 349,100.00 113,457.50 235,642.50 - 2,281,392.00 1,011,988.06 1,269,403.94 2,251,892.00 949,556.39 1,302,
hnical & Scientificpment
12,105,662.47 5,322,108.04 6,783,554.43 545,996.57 245,698.45 300,298.12 - 12,651,659.04 5,567,806.49 7,083,852.55 12,651,659.04 5,512,942.49 7,138,
er Machineries &pment
1,904,102.00 811,672.30 1,092,429.70 - - 1,904,102.00 811,672.30 1,092,429.70 1,847,157.00 802,458.42 1,044,
or Vehicles 99,140,884.63 22,949,909.84 76,190,974.79 3,104,650.00 2,000,130.03 1,104,519.97 4,876,500.00 128,603.52 4,747,896.48 107,122,034.63 25,078,643.39 82,043,391.24 113,205,296.63 20,704,932.67 92,500,
ercrafts 197,500.00 69,618.75 127,881.25 - - 197,500.00 69,618.75 127,881.25 197,500.00 51,843.75 145,
er Transportationpment
374,000.00 66,600.00 307,400.00 - - 374,000.00 66,600.00 307,400.00 374,000.00 10,800.00 363,
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er Property, Plantquipment
265,341,628.00 2,072,527.51 263,269,100.49 3,410,002.53 3,069,002.30 341,000.23 306,123.00 3,774.90 302,348.10 269,057,753.53 5,145,304.71 263,912,448.82 268,630,939.67 4,184,684.55 264,446,
ds, Highways and
ges- - - - - - 0.00 0.00
s, Plazas &numents
2,427,223.00 2,427,223.00 - - 2,427,223.00 - 2,427,223.00 2,427,223.00 0.00 2,427,
ks and Wharvesuding Passageway
- - - - - - 0.00 0.00
er Supply, Headtrol, Reservoir andduits
- - - - - - 0.00 0.00
sian Wells,ervoir, Pumping
ons & Conduits
62,874.97 62,874.97 384,335.11 384,335.11 - 447,210.08 - 447,210.08 447,210.08 0.00 447,
ation, Canals &rals
42,901,095.17 42,901,095.17 - - 42,901,095.17 - 42,901,095.17 42,901,095.17 0.00 42,901,
bor, Riverwall,walls and
rovements
- - - - - - 0.00 0.00
er Publicastructures
124,488,393.45 124,488,393.45 180.00 180.00 - 124,488,573.45 - 124,488,573.45 124,488,573.45 0.00 124,488,
orestation - Upland 49,500.00 49,500.00 - - 49,500.00 - 49,500.00 49,500.00 0.00 49,
struction ingress - Agencyets
252,893,064.67 252,893,064.67 34,703,978.07 34,703,978.07 17,715,140.79 17,715,140.79 305,312,183.53 - 305,312,183.53 273,777,520.93 0.00 273,777,
struction ingress - Roads,
hways & Bridges
97,705,700.09 97,705,700.09 - 3,462,119.00 3,462,119.00 101,167,819.09 - 101,167,819.09 90,889,143.56 0.00 90,889,
struction ingress - Parks,as & Monuments
2,058,473.40 2,058,473.40 - - 2,058,473.40 - 2,058,473.40 2,058,473.40 0.00 2,058,
struction in
gress - Artesianls, Reservoirs,ping Station &duits
294,724,506.98 294,724,506.98 - 7,135.00 7,135.00 294,731,641.98 - 294,731,641.98 104,730,484.21 0.00 104,730,
struction ingress - Irrigation,als and Laterals
21,440,199.59 21,440,199.59 - - 21,440,199.59 - 21,440,199.59 19,101,803.79 0.00 19,101,
struction ingress - Floodtrols
3,760,708.02 3,760,708.02 - - 3,760,708.02 - 3,760,708.02 3,280,873.82 0.00 3,280,
struction ingress - Waterways,aducts, Seawalls,r Walls and Others
4,849,245.13 4,849,245.13 - - 4,849,245.13 - 4,849,245.13 4,353,352.73 0.00 4,353,
struction ingress - Other Publicastructures
67,890,278.41 67,890,278.41 236,686.90 236,686.90 2,206,410.00 2,206,410.00 70,333,375.31 - 70,333,375.31 55,099,174.97 0.00 55,099,
struction ingress -orestation -shland/Swampland
7,197.08 7,197.08 - - 7,197.08 - 7,197.08 7,197.08 0.00 7,
TOTAL 2,316,834,667.25 117,508,795.45 2,199,325,871.80 209,770,794.52 41,766,337.71 168,004,456.81 52,862,880.81 285,290.90 52,577,589.91 2,579,468,342.58 159,560,424.06 2,419,907,918.52 2,297,513,901.90 134,928,400.19 2,162,585,
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Note 9: Other Assets P 32,322,220.49
This account consists of:
Account Title GF SEF TF CY 2012 PY 2011
Work/Other Animals 1,322,924.00 233,000.00 1,555,924.00 1,555,924.00
Breeding Stocks 28,217,431.28 28,217,431.28 28,090,731.28
Other Assets 353,092.00 2,195,773.21 2,548,865.21 2,548,865.21
Total 29,893,447.28 2,195,773.21 233,000.00 32,322,220.49 32,195,520.49
• Total Other Assets amounted to P32,089,220.49 for all
funds, comprising the General Fund, Special Education Fundand Trust Fund, broken down into P29,893,447.28 ; P
2,195,773.21 and P 233,000 , respectively, as caused by an increasefrom General Fund Work / Other Animals and Breeding
stocks, in the amount of P 300,000.00 and P 40,500.00,respectively.
Note 10: Current Liabilities P 602,008,218.51
This account consist of:
Account Title GF SEF TF CY 2012 PY 2011
Payables:
Accounts Payable 69,424,718.53 3,756,348.87 73,181,067.40 64,385,057.37
Due to Officers &Employees
9,618,487.51 2,768.74 9,621,256.25 6,570,794.11
Sub-Total 79,043,206.04 3,759,117.61 - 82,802,323.65 70,955,851.48
Inter-Agency Payables:
Due to BIR 18,587,152.15 1,283,568.48 3,252,074.05 23,122,794.68 13,199,494.35
Due to GSIS (1,232,945.81) 272,242.42 (960,703.39) (892,995.00)
Due to PAG-IBIG 2,581,556.12 122,921.15 2,704,477.27 2,671,855.12
Due to PHILHEALTH 1,737,215.02 1,489,546.87 3,226,761.89 2,244,361.89
Due to Other NGAs 10,047,949.43 52,860,016.31 62,907,965.74 62,455,138.38
Due to Other GOCCs 189,810.00 16,742,125.93 16,931,935.93 14,637,884.34
Due to LGUs 166,496.29 1,715,985.93 1,882,482.22 1,886,731.95
Sub-Total 32,077,233.20 3,168,278.92 74,570,202.22 109,815,714.34 96,202,471.03
Intra-Agency Payables:
Due to Other Funds 33,053,722.00 207,458.51 16,144.91 33,277,325.42 104,114,278.31
Sub-Total 33,053,722.00 207,458.51 16,144.91 33,277,325.42 104,114,278.31
Other Liability Accounts:
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Account Title GF SEF TF CY 2012 PY 2011
Guaranty Deposits Payable 16,534,859.73 914,579.87 636,895.26 18,086,334.86 9,650,509.51
Performance/Bidders/BailBonds Payable
666,575.65 66,918,984.89 67,585,560.54 65,250,520.93
Other Payables 14,439,920.17 232,943.84 275,768,095.69 290,440,959.70 316,821,838.85
Sub-Total 31,641,355.55 1,147,523.71 343,323,975.84 376,112,855.10 391,722,869.29
Grand-Total 175,815,516.79 8,282,378.75 417,910,322.97 602,008,218.51 662,995,470.11
• Accounts Payable due to GSIS incurred a debit balance of P960,703.39,
broken down from Special Education Fund balance of P272,242.42 and adebit balance of P1,232,945.81 under the General Fund. A debit balance under
General Fund, as a result from the city’s partial settlement of premiums, penalties and surcharges in arrears, subject for review and verification
pending submission of GSIS detailed listing.
. Due to BIR as of December 31, 2012, with a total amount of P23,122,794.68,included VAT deducted from Iligan City Water Supply System Dev’t. Project
in favor of RD Policarpio & Co., Inc. totaling P5,891,447.45. Said amountwas remitted to BIR under LBP CA 0322-1063-43 and DBP CA 0820-
016198-030, both Iligan City Government Account, instead of LBP CA 0322-1126-53 Iligan City Water Supply System Dev’t. Project, subject for
adjustment.
• Due to Other Funds , as of December 31, 2012 and as of December 31,
2011 amounting to P33,277,325.42 and P104,114,278.31, respectively, witha difference of more or less P70M , included among others , PDAF
and Calamity Fund for Typhoon Sendong in the total amount ofP28M and P74M, respectively, which was transferred in the year 2012.
• Performance/Bidders/Bail Bonds Payable increased by only P2.335M ascompared to last year 2011, in the amount of more or less P60M due to the
receipt of Performance/Bidder’s Bond of Conal Holding Incorporated.
Note 11: Long Term Liabilities P 677,866,248.46
This account consists of :
ACCOUNT TITLE CY 2012 PY 2011
National Government Agencies
MDFO- PRMDP 20,518,792.65 24,525,239.78
Total 20,518,792.65 24,525,239.78
Government Owned and/or Controlled Corporation
DBP- IBJT
DBP-Miscellaneous Health Services 47M
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ACCOUNT TITLE CY 2012 PY 2011
DBP-WATER WORKS PROJECT 50M
DBP-Various Projects 28M 28,000,000.00
Total 28,000,000.00
Solid Waste Management Project & Heavy Equipment
DBP-SOLID WASTE MANAGEMENT PROJECT(DBP funds) - 1st drawdown ( 7,538,000.00)
DBP-SOLID WASTE MANAGEMENT PROJECT
(kfw funds) - 1st drawdown (62,440.000.00)35,903,000.00 42,147,000.00
DBP-Solid Waste Management Project (kfw funds)
- 2nd drawdown (78,050.000.00) 46,029,487.20 54,034,615.40
DBP-MRF Solid Waste Management Project (KFW Funds)
3rd drawdon (P15,610,000.00 13,297,407.40
Total 95,229,894.60 96,181,615.40
Iligan City Water Supply System Development Project
LBP - WATER SYSTEM EXPANSION PROJECT (445.5M)
-1st Released58,517,383.00
29,258,691.50
LBP - WATER SYSTEM EXPANSION PROJECT(14,476,166.24)-2nd Released
28,952,332.4814,476,166.24
LBP - WATER SYSTEM EXPANSION PROJECT
(17,272,705.25)-3rd Released34,545,410.50
17,272,705.25
LBP - WATER SYSTEM EXPANSION PROJECT
(69,574,896.52)-4th Released139,149,793.04
69,574,896.52
LBP - WATER EXPANSION PROJECT (96,931,035.49)-5th
Released171,758,901.44
85,879,450.72
LBP - WATER EXPANSION PROJECT (22,135,669.16)-6th
Released22,135,669.16
LBP - WATER EXPANSION PROJECT (25,725,128.73)-7th
Released
25,725,128.73
LBP - WATER EXPANSION PROJECT (15,194,710.96)-8th
Released15,194,710.69
LBP - WATER EXPANSION PROJECT (9,409,563.99)-9th
Released9,409,563.99
LBP - WATER EXPANSION PROJECT (11,899,913.35)-
10th Released11,899,913.35
LBP - WATER EXPANSION PROJECT (16,828,754.83)-
11th Released16,828,754.83
Total 534,117,561.21 216,461,910.23
Grand Total 677,866,248.46 337,168,765.41
• The city government of Iligan had short term loans with DBP, namely P28Mand P47M DBP-Various Loans, with a term loan of 03/12/12-03/12/13 and
10/03/12-10/03/13, respectively. Last November 22, 2012, a one-time full payment was made on DBP loan – P47M Various Priority Projects. DBP-
MRF Solid Waste Management Project (kfw funds) – third drawdown wasreleased February 07, 2012 in the amount of P15.610M. The actual total of the
15 years LBP Water System Expansion Project totalled P317,655,650.98 with
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eleven releases as of December 31, 2012. Adjustment of the difference,,P216,461,910.23, as compared with the total amount of P534,117,561.21 will
be made on January 2013 Financial Reports.
• Total balance as of December 31, 2012 showed an increased of
P340,697,483.05 due to full payment of loans and new releases of approvedloans of the city.
• Necessary adjustments will be made to reconcile loan records as soon as debit/ credit memos from the bank with sufficient data be furnished.
Note 12 : Deferred Credits P 766,610,108.19
This account consist of :
Account Title GF SEF TF CY 2012 PY 2011
Deferred Real PropertyTax Income
415,919,177.02 415,919,177.02 480,095,775.09
Deferred SpecialEducation Tax Income
350,144,333.12 350,144,333.12 408,754,935.44
Other Deferred Credits 441,584.05 7,614.00 97,400.00 546,598.05 520,725.43
Total 416,360,761.07 350,151,947.12 97,400.00 766,610,108.19 889,371,435.96
• Total amount of P 766,610,108.19 representing Total Deferred
Credits under the General Fund Account, Special EducationFund and Trust Fund with an amount of P416,360,761.07,
P350,151,947.12 and P97,400.00, respectively .
• Other Deferred Credits in the amount of P546,598.05 included a portion ofReal Property Tax credits in the amount of P430,209.85 under the General
Fund Account.
Note 13: Government Equity P 2,751,825,297.93
Composition :
Account Title GF SEF TF CY 2012 PY 2011
Government Equity, Beg. 2,381,861,608.37 200,982,074.59 56,880,784.60 2,639,724,467.56 2,365,710,745.84
Add: -Retained Operating
Surplus129,671,975.43 9,083,057.80 138,755,033.23 290,216,706.22
Prior Year's Adjustments (12,659,050.76) 580,717.20 809,293.84 (11,269,039.72) 14,206,237.68
Deduct: -
Public Infrastructures 6,756,401.14 6,756,401.14 (19,274,710.97)
Prior Year's Adjustments 8,628,762.00 8,628,762.00 (11,134,511.21)
Government Equity, End 2,483,489,369.90 210,645,849.59 57,690,078.44 2,751,825,297.93 2,639,724,467.56
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• Total amount of government equity as of December 31, 2012and December 31, 2011, P2,751,825,297.93 and P2,639,724,467.56,
respectively, a difference of P112,100,830.37.
• A good number of completed public infrastructure projects and agency assets
as of December 31, 2012 had been transferred to Registry of Public Infrain the amount of P6,756,401.14. Itemizing some Property, Plant andEquipment including public infrastructures from the lumpsum amount are still
on progress.
• Equity set aside to finance capital projects with appropriations provided in thecurrent year and previous years.
• Prior-Year adjustments included those transactions affecting the nominal
accounts and other adjustments which increase or decrease the RetainedOperating Surplus account, such as adjustments of excess revenue recorded in
prior years; payments of unrecorded expenses of prior years such asdepreciation, liquidations of prior year expenses, etc.
Note 14: Income P 1,124,252,002.84
Account Title GF SEF TF CY 2012 PY 2011
Local Taxes 171,206,558.76 66,219,392.94 237,425,951.70 231,642,149.73
Internal Revenue Allotment 732,393,920.00 732,393,920.00 853,673,770.00
Permits and Licenses 8,017,002.38 8,017,002.38 8,167,651.62
Service Income 16,108,122.04 16,108,122.04 16,985,799.03
Business Income 98,749,478.64 98,749,478.64 90,174,625.70
Other Income 30,893,568.99 663,959.09 31,557,528.08 31,951,729.05
Total 1,057,368,650.81 66,883,352.03 - 1,124,252,002.84 1,232,595,725.13
• Total Operating Income for General Fund and Special Education Fund, as of
December 31, 2012 and as of December 31, 2011 amounted to amounted toP1,124,252,002.84 and P1,232,595,725.13, respectively, showing a
decreased by more or less 50%.
• Under the General Fund Account, total Share from National Wealth as ofDecember 31, 2012 amounted to P21,058,502.90. Included in this year's
share was the P 5,394,978.39 uncollected portion of year 2011, while theFourth Quarter, 2012 share was not yet collected.
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• Share from IRA, for the year 2012, amounted to onlyP732,393,920.00 as compared to year 2011, which was P853,673,770.00,
with a rapid decreased of P121,279,850.00.
• Share from Economic Zone as of December 31, 2012, amounted to
P3,744,896.99, a portion of which included the fourth quarter, 2011 share ofP 3,236,566.00. While the fourth quarter, 2012 share, was not yet collected .
• Total Interest Income for the year ended December 31, 2012 and asof December 31, 2011, for both GF and SEF amounted to P5,433,907.11
and P 5,443,666.31 , respectively.
Note 15: Expenses P 958,659,309.43
Account Title GF SEF TF CY 2012 PY 2011
Personal Expenses 471,184,473.71 50,529,226.39 521,713,700.10 490,794,856.47
Maintenance & OtherOperating Expenses
387,919,088.24 7,024,067.84 394,943,156.08 394,069,044.29
Financial Charges 42,002,453.25 42,002,453.25 30,643,124.10
Total 901,106,015.20 57,553,294.23 - 958,659,309.43 915,507,024.86
• Total Expenses as of December 31, 2012, amounted to P958,659,309.43,
Comprising the General Fund and Special Education Fund, amounting to
P901,106,015.20 and P57,553,294.23, respectively.
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Part II - FINDINGS AND RECOMMENDATIONS
A. Financial and Compliance Audit
1. Physical Count of Property, Plant & Equipment
The financial report of the City government showed Property, Plant and Equipment
(PPE) accounts with book value of P 2,419,907,918.52. The amount, consisting of
movable properties issued to the various city department offices of P609,251,454.10
and immovable properties of P1,810,656,464.42, could not however, be validated
because the physical inventory report which could be our basis to match the
properties by classification and their corresponding amounts was not submitted to
the Commission (COA) as required under Section 122 of Presidential Decree (PD)
No. 1445.
Section 122(1) of PD 1445, states that “Whenever deemed necessary in the exigencies of the service, the Commission may under regulations issued by it require the
agency heads, chief accountants, budget officers, cashiers, disbursing officers,administrative or personnel officers, and other responsible officials of the various
agencies to submit trial balances, physical inventory reports, current plantilla of personnel, and such other reports as may be necessary for the exercise of its functions”
(Underlining ours).
Relative thereto, the Commission has issued COA Circular No. 2002-003 datedJune 20, 2002, re- prescribing the Manual on the New Government Accounting System
(Manual Version) for Use in Local Government Units. Under Section 124 thereof, it
states “ Inventory of Supplies or Property” x x x x. Physical count of property, plantand equipment by type shall be made annually and reported on the Report on the PhysicalCount of Property, Plant and Equipment (RPCPPE). This shall be submitted to the
Auditor concerned not later than January 31 of each year.
Per records of our office, the RPCPPE starting from Calendar Years (CYs) 2010,2011 and 2012 were not submitted, thus the book value and existence of the (PPE) in the
amount of P 2,419,907,918.52 as reported in the Financial Statements of all funds duringthose periods could not be validated. The breakdown by Funds are shown below:
FundMovable
Properties
Immovable
Properties
Total Amount
General Fund P577,846,710.94 P1,621,479,160.86 P2,199,325,871.80
Special Education Fund 23,217,217.04 144,787,239.77 168,004,456.81
Trust Fund 8,187,526.12 44,390,063.79 52,577,589.91
Total P609,251,454.10 P1,810,656,464.42 P2,419,907,918.52
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The rationale behind the need for compliance of the requirement is to ascertainthe correctness of the property records versus actual items on hand and their
corresponding values and ensure smooth transfer of accountability whenever there is probable or possible change of local chief of executive or department/office head due to
retirement, re-assignment, resignation, transfer, death or expiration of term of office. It
has also underlying purposes, such as to reconcile with accounting records, determine theobsolescence and deterioration due to wear and tear, identify the official/employeeresponsible in case of loss due to theft, fire or other casualty, to segregate unserviceable
from serviceable, to transfer to other assets fully depreciated PPE but still usable, to dropfrom the RPCPEE unserviceable PPE which are found beyond economic repair and/ or
the cost of the repair exceeds the limit of 30% of the acquisition cost of brand new of thesame kind of PPE, to identify city properties which are recorded at the barangay
government; to reclassify small value items recorded as PPE to inventory accounts and toexamine the ownership and authenticity of the Certificate of Land Title (CLT), among
others.
The issuance of the equipment to officers and employees is provided in Section492 of the Government Accounting and Auditing Manual (GAAM), which must be
strictly followed, thus:
“Equipment issued by the Property Officer for official use of officials andemployees shall be covered by an Acknowledgement Receipt for Equipment (ARE)
which shall be renewed every January of the third year after issue. MRs not renewed afterthree years shall not be considered in making physical count of the equipment.”
Corollary to this, persons primarily accountable for government property assigned
or issued to his/her department/office is lodged to the department/office head while persons having custody of government property under the accountability of the
department/office head is immediately accountable to such officer (Section 375(a) of theLocal Government Code or the Code for brevity). Thus, department/office head
primarily accountable for government property may require any person in possession ofthe property or having custody and control thereof under him to keep such records and
make reports as may be necessary for his own information and protection (Section 375(b) of the Code).
We have recommended the following:
i. Create an Inventory Committee to conduct the physical count of the
properties of the City government (All Funds) including acquired and
donated land. After which, the Committee should come up with the
Report on the Physical Count of Property, Plant and Equipment
(RPCPPE) by type to be submitted to the City Mayor’s office copy
furnished the City Auditor’s Office not later than May 31, 2013.
ii. To ensure the success of the Committee, all department/office head
should be required to conduct its own Physical Count of all the
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properties in their respective department/office immediately based on
the signed MRs and AREs on file at their office and to submit the
RPCPPE and IIRUP, as applicable, and likewise, to prepare separate
report for loss of government property to the Committee copy
furnished the City Auditor’s Office.
iii. For the physical count of breeding stocks/animals, the City
Veterinarian and the City Agriculturist should be recommended as
members of the Committee.
2. Casuals, JO and Contractual workers
The city treasury fund was depleted by P68M as of September, 2012 for incurring
wages of hired casuals, job order workers and contractual workers numbering
about 2,525, which some of them are not necessary and their assign job can be
performed by a regular employees or dispensed with without loss of life or propertyor may not cause embarrassment to the city government.
The plantilla position of the various department/office for Calendar Year (CY)
2012 disclosed that 347 positions are unfilled since CY’s 2010, 10 of which aredepartment/assistant department head position. The details are shown below:
Departments/OfficesNo. of unfilled/
vacant positions
City Mayor’s Office 13
SP-Secretariat 12
City Administrator’s Office 30City Human Resource Management Office 13
City Planning and Development Coordinator Office 5
City Civil Registrar’s Office 7
City General Services Office 10
City Budget Office 5
City Accountant Office 8
City Treasurer’s Office 26
City Assessor’s Office 13
City Legal Office 6
City Health Office 28
City Social Welfare & Development Office 26City Agriculturist Office 10
City Veterinarian 2
City Environment Management Office 21
City Cooperative Development & Livelihood Office 3
City Engineer’s Office 42
Gregorio T Lluch Memorial Hospital 38
Iligan City Waterworks System 21
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Departments/OfficesNo. of unfilled/
vacant positions
Economic Enterprises Development and Management Office 8
Total 347
Data provided by the City Human Resource Management Office disclosed that asof December 2012, an average of 2,525 casuals, job order workers and contractual
workers were hired and distributed to the 22 departments/offices of the city government.
The breakdown are as follows:
Department/Office
No. of casuals, job
order workers &
contractual worker
City Accountant 18
City Administrator 424
City Agriculturist 16City Assessor 7
City Budget Office 1
City Civil Registrar 38
City Cooperative Development & Livelihood 17
City Engineer 156
City Environment and Management 27
City General Services 22
City Health 129
City Human Resources Management 10
City Legal 4
City Mayor’s 1,116City Planning & Development 2
City Sangguniang Panlungsod 5
City Social Welfare & Development 34
CityTreasurer’s Office 47
City Veterinarian’s Office 7
EEDMO 217
Gregorio T. Lluch Memorial Hospital 66
City Waterworks 162
Total 2,525
Had the city government filled up the vacant positions, the number of hired
casuals could have not been as large as shown in the above table. Casuals are being hiredas a filler to vacant positions, no employee-employer relationship, cost of services are
lesser, some are hardworking and their work can be relied by the department/officeconcerned, perhaps some are accommodated assigned in barangays and other national
offices, holders of regular item such those in the garbage collection do not assume full
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responsibility and others to perform job which the department/office have no regularemployees to undertake the task.
A random head count was conducted on eight out of 22 departments/offices on
December, 2012. We found that some of these hired casuals, etc., are not necessary, for
instance in the BAC, TORU & Cashier’s Office, etc. There was no restraint on the hiringas most of the offices have excessive number of them as shown in the foregoing tablesand perform the works of regular employees.
Evaluation of the accomplishment report submitted by the casuals, job order
workers, and contractual workers reveal the following:
Common accomplishments includes preparation of application of leave, traveldocuments and liquidation of travels of regular employees, preparation of PRs,
POs, APPs, driver’s trip tickets, process payrolls of casuals, cleans the office, photocopying of official documents, preparation of DVs for gasoline, cash
advance for travel, payroll for scholarship encoding and printing of data andreport, dissemination of notices of meetings, recording incoming and out-going
communications, act as a driver, act as EMCEE for training program and etc.
Accomplishments beyond the scope of the casuals/job order workers are
reconciliation & posting of leave application, updated leave balances & posting ofunder times, issuance of official receipts, confiscation of weighing scales;
confiscation of tarpaulin without and expired permit, inspection of businessestablishment with or without business permit, act as custodian of office supplies,
act as collector of market fees, comfort rooms, terminal fees, police clearance,issuance of community tax receipt, etc.
Other accomplishments such as garbage collection and disposal, maintenance ofcity plaza and parks, clean and green of the city hall premises where regular
employees are appointed was augmented by the hired job order workers.
The accomplishment report could not be gauge with the statement of duties andresponsibilities of the said casuals because department/office head have not submitted the
same including the brief description of the function of department/office as required bythe Audit Team Leader except the City Legal Office. The internalization of the statement
of duties and functions could monitor the accomplishment per assigned job, avoidduplication of assignment and review the work to avoid repetition of work.
We also observed some offices perform the functions of other offices, for instance
calibration and confiscation of weighing scales are functions of the market supervisor notof the city license functions; collections of taxes, fees and repayment of loan is a treasury
functions not of the city license and cooperative development & livelihood office andcannot be delegated to casuals, etc. and preparation of SAOB belongs to the budget office
not the accountant office.
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Considering the number of hired casuals, etc, on monthly/yearly the payment oftheir wages become a perennial problem of the city government because of insufficiency
or lack of appropriations.
For calendar year 2012, the Annual Budget for payment of wages of casuals, etc.,
are shown in the preceding table, as follows:
Office/ PPA 705 795 796 797 Total
City Mayor’s Office- 1011 10,000,000 10,000,000 20,000,000
1991 100,000 100,000
6541 200,000 200,000
Sangguniang Panlungsod
SP 1021 3,214,669 8,000,000 8,000,000 19,214,699
SP 1022 3,800,000 3,800,000
City Administrator’s Office
1031 2,000,000 2,000,000City Environment
Management Office-8731 5,000.000 5,000,000
City Engineer’s Office6542
200,000 200,000
GTLMH 4421 7,108,436 7,108,436
EEDMO 8811 3,000,000 4,371,002 7,371,002
8821 1,800,000 1,800,000
8821-1 1,200,000 1,200,000
Total 13,423,105 34,571,002 18,000,000 2,000,000 67,994,107
As of September 30, 2012, the city treasury have paid the amount of
P67,876,495.52 for the wages of the 2,525 casuals, job order workers and contractualworkers. The details of the expenses are shown below:
Object of Expenditures Account Code Amount
Personal Services 705 P48,487,363.29
General Services 795 11,949,438.90
Janitorial Services 796 7,020,420.70
Security Services 797 419,272.63
Total P67,876,495.52
The difference between the actual expenditures and appropriation for personal
services (705) was due to the augmentation of fund from savings in the unfilled positionof the various city departments/offices pursuant to Section 336, RA No. 7160.
Augmentation of fund became the last recourse in case of insufficiency of fund to coverthe expenses for services already rendered.
All these services can be dispensed with without loss to life or property or it maynot cause embarrassment to the city government. Thus, the payment of their wages for
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services rendered can be utilized or reprogrammed to tangible infrastructure projects beneficial to the city government and its constituents and/or it can be appropriated to
repay its outstanding loan.
We have recommended the following corrective measures to mitigate the
problems on the rising number of casuals, etc and the source of fund to pay their wages,to wit:
i. Fill up the vacant positions in the offices of the city accountant, city
treasurer, GTLMH, city health office, city social welfare &
development office and EEDMO.
ii. Mobilize regular personnel appointed for garbage collections and
disposals, city plaza and parks and city hall premises to replace the
casuals or job order workers or contractual workers presently assigned
thereat;
iii. Devise a policy and internal control in the hiring of job orders such as
but not limited to requiring the description of duties and
responsibilities; recommendation of the department/office head availing
the services of a job order and approval of the local chief executive;
3. Fuel & Oil Inventory and Consumption
Fuel and Oil Inventory in the amount of P822,073.41 remained dormant for more
than three years. The existence of the account is doubtful as the city government has
no fuel depot. The lack of sound control process also resulted to doubtfulness and
uneconomical use of gasoline, fuel and lubricants.
The balance sheet of the city government showed the account “Fuel and OilInventory” in the amount of P822,073.41. Review of the balance sheet showed that the
same amount has been forwarded for the last three years and that no information wasgathered that a fuel depot is owned by the city government for its storage, raising doubts
as to the veracity and existence of the account.
The objective of sound internal control system is for management to achieveefficiency, economy and effectiveness of its operations. It makes possible the prevention
and early detection of fraud, waste and errors especially in reporting. As expected,reports have to be prompt, accurate and complete. Reports losses its value and usefulness
especially if tainted with inaccuracies and errors.
As provided in the manual on fuel consumption, payments and utilization ofgasoline, fuel and lubricants shall be supported by the following documents:
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Driver’s trip tickets duly accomplished and approved and total distance traveled inkilometers with odometer reading indicated in the trip tickets.
The beginning liters before the trip shall be added to liters purchased during thetrip, deducted with the liters used during the trip, after which the ending liters will be reported and shall become the beginning liters for the next authorized travel.
The approved trip ticket shall also be signed by the driver and authorized passenger/s of the vehicle.
The analysis of the monthly fuel consumption reports from January 2012 of 17
motor vehicles assigned to CMO-Finance, disclosed the following:
Trip tickets attached to support the travels made were not properly filled up andaccomplished, as to:
Signature of Driver and Passengers- the driver signed as passenger as well only to
show the driver was alone while moving around the city without . In someinstances, the passenger’s name is not written on the driver’s trip ticket.
Speedometer/odometer readings were not also shown to support liters used foreach trip, thus there is an excessive consumption of gasoline and diesel.
The drivers have a fixed fuel consumption of 10 kilometers per liter regardless ofthe classification of motor vehicle, model, and either old or new which render thereport unreliable.
The CMO-Finance has so many pad of requisition slip or withdrawal slip being
use and it is not issued in a chronological order. Sometimes, the approvingofficial of the driver’s trip ticket and requisition slip is not the same person.
The driver’s trip ticket has no control mechanism, each department/office hastheir own without serial number.
The original copy of the driver’s trip ticket together with the monthly report offuel consumption for each vehicle was not submitted to the Office of the City
Auditor a clear deviation from the
The absence of proper monitoring, review in the reporting process resulted to
deficiencies as stated in the foregoing. The inaccuracies and erroneous computationsfinally resulted to doubtfulness of the fuel consumption reports and malpractices will not be corrected and detected if deficiencies will be allowed to continue.
We have recommended the following:
i. Require the Accountant to determine how the inventory account was
recorded – identify the supplier/gas station, reconcile/trace and retrieve
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documents to determine possibility of non-recording of
issuances/usages, possible erroneous entry or otherwise;
ii. The driver’s trip ticket should be serially numbered. In this case the
City General Services Office/ shall provide or make available to all
department/office the driver’s trip ticket with control number or serialnumber;
iii. No motor vehicle should be allowed to depart from the office without
the driver’s trip ticket duly approved by the department/office head or
the Assistant department head or the officer in-charge, in the absence of
the former. Employees using the motor vehicle during office hours
should support copy of their locator slip or pass-out slip duly approved
by the department/office head or his authorized representative stating
therein the purpose and place to be visited in the driver’s trip ticket and
must sign the driver/s trip ticket in the authorized passenger(s);
iv. All requisition slip or withdrawal slip should be issued in chronological
sequence or consecutively duly sign by the approving official on the
driver’s trip ticket or his authorized representative;
v. Install speedometer/odometer in all motor vehicles to replace
dilapidated one. Show odometer reading during the beginning or end of
the official travel/trip in the driver’s trip ticket to determine the actual
fuel consumed during the travel;
vi. All motor vehicle shall be parked/ kept in the garage or at the office.
The practice of allowing the driver’s particularly casual’s/job order
worker to bring the motor vehicle in their residence is strictly
prohibited. Department/office head is reminded of their responsibility
and accountability for all government properties;
vii. Fetching of official/employee from residence to office and vice versa
including the use thereof of the members of the family of the
official/employee and driver’s even if they are riding with such official/
employee /driver is strictly prohibited; and
viii. Within 10 days from the end of the month, the driver through their
department/office head shall submit the monthly fuel consumption
report together with the original copy of the driver’s trip ticket to the
office of the City Auditor for audit purpose.
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4. Official Marking of Motor Vehicles
Some government motor vehicles of the City were not marked “For Official Use
Only”, while the necessity of issuing more than one motor vehicle to a city
department/office was not evaluated, and further, city officials whose
department/office were assigned with motor vehicle/s still collect transportationallowance, thus, defeating the regulations on the proper use of government vehicles
and entitlement of transportation allowance.
As of the physical count of Property Plant and Equipment on June 30, 2010, the
City Government has 168 motor vehicles and 246 motorcycles. These motor vehiclesand motorcycles were assigned to 26 departments/offices serving the City government
including four national government offices. The quantity had been increased as the citygovernment have acquired new motor vehicles and motorcycles in Calendar Years 2011
and 2012. The city government has no garages to house these equipments.
The government had regulated the use of government motor vehicles, some ofwhich are stated hereunder, as follows:
1. Use of Driver’s Trip Ticket;
2. Marking “For Official Use Only”; 3. Use for Official Purpose;
4. Use of Government Plate; and5. Keeping in Government Garages.
In a random inspection conducted on January 7, 2013, 21 of these motor vehicles
have no marking “For Official Use Only” especially those newly acquired. These motorvehicles bear government plate, except one for registration as follows: 1) SEB 454; 2)
SJE 873; 3) SJJ 593: 4) SEB 526; 5) SHJ 289; 6) SDX 677; 7) SGT 750; 8) SJJ 845; 9)SEB 577; 10) SHJ 314: 11) SHJ 186; 12) SHJ 215; 13) SHU 297; 14) SFM 857: 15) SKP
476; and 16) Temp Plate 1036 As-741; 17) sSJE 903; 18) SKH 710; 19) SHM 583; 20)SCC 970; 21) SKE 969.
The regulations states that:
All motor vehicles owned by the x x x x x x and all local government units x x x
x x x, except those used by the officials, as mentioned in Section 9, P.D. 733, should be plainly marked: FOR OFFICAL USE ONLY (3 INCHES) under which should be
written the corresponding name of the x x x x x provincial city, municipality, or otherlocal government unit operating or using the name.
The marked should appear on each side of the motor vehicle. When there is no
sufficient space on each side, the same should appear at the back and on the front just below the windshield of the motor vehicle.
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The Audit Team Leader have not been remised of informing or reminding theCity General Services Office of the government regulations on marking of motor
vehicles “FOR OFFCIAL USE ONLY” as shown by our letter dated June 8, 2011.
The observation further disclosed some of these were used to fetch the official
and/or employee from home to office and vice versa and in some instances privateindividuals are seen as passenger except only during the declaration of state of calamity.The practice runs counter to the government regulations that motor vehicles must be use
for public purpose as stated below:
Government motor vehicles should be used strictly and exclusively for official business. In other words, the use thereof for private social functions such as receptions,
balls, theaters, and for other personal purposes is absolutely prohibited. The use ofgovernment transportation by the spouses, children, relatives, friends, etc. of the officials
entitled thereto is included in the prohibition even if they are in the company of saidofficials. Unless specifically authorized by the Office of the President, government
vehicles shall not be used for fetching officials or employees from home to office andvice versa, except those local government officials mentioned in Section 4 of Executive
Order No. 31, Series of 1954, because of the nature of their duties and responsibilitiesand their official standing in their communities, as follows: provincial governors,
provincial treasurers, provincial auditors, division superintendents of schools, districthealth officers, district engineers, and others of equal rank.
There is also an iota of doubt whether the said motor vehicles moving around the
city streets use driver’s trip ticket upon moving out from the office.
The government regulations requires that the use of government vehicles by the bureaus and offices enumerated under Section 12 of Presidential Decree No. 733 for the
purpose herein indicated shall be authorized only through the issuance of each trip ticket,duly signed by the Administrative Officer of the bureau, office, or entity concerned in
Form A, Driver’s Trip Ticket.
More so, the city government does not have a garage to keep their own motorvehicles when not in use, thus, most of these motor vehicle was brought by the driver in
their home or at the city official’s residence.
The city government also maintains 246 motorcycles issued to the various citydepartment offices most of these have no proper marking also and some do not bear RP
(government) plate.
Relative thereto, pursuant to COA Circular No. 75-6, as amended, directed theAuditors (now the Audit Team Leaders) to disallow in audit expenses in connection with
the operation and use of government vehicles, unless the vehicles involved have been properly mark ed with the words, “FOR OFFICIAL USE ONLY”, etc., in accordance
with the regulations, the RP plate installed and the prescribed driver’s trip ticket dulyaccomplished.
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Other observation disclosed that most of the city departments/offices have been
assigned or issued with more than one (1) motor vehicle. Also, most of the citydepartment/ office head where his/her office was assigned or issued with motor vehicle
collect transportation allowance. Relative thereto, quoted hereunder is the pertinent
portion of the Supreme Court decision in the case of “Aida Domingo vs. Commission onAudit”, G.R. No. 112371:
“As correctly pointed out by the Solicitor General, there are two instances whentransportation allowance cannot be granted to a government official, as when a
government official assigned a vehicle and when a government official uses governmenttransportation facilities. It is undeniable that several government vehicles were issued to
the Regional Office of DSWD in Region V. That the vehicles thereat were issued not to petitioner herself, as Regional Director, but to the Regional Office itself, is of no
moment. What is important and decisive is that such vehicles were intended primarily forthe official use of subject office and its officials and employees. As maintained by the
Solicitor General, whether or not herein petitioner used the vehicles assigned to heroffice, is not an issue, as it is undeniable that she could have used the said vehicle
whenever she wanted to since it was assigned to her office,”
The Court, likewise ruled: “ In the case under consideration, it must be noted thatthe provisions of law referred to in the General Appropriation Acts of 1988, 1989, 1990
and 1991, utilized the word “assigned” and not “used” Webster’s Dictionar y defines theword “assign” as to “transfer (property) to another in trust” Had legislative intent been
that government officials issued an official vehicle could still collect transportationallowance if they do not actually use subject vehicle, the word “use” instead of “assign”
should have been employed.”
Pursuant to COA Circular No. 99-002 dated June 15, 1999, based on the abovecited ruling, it is clear that government officials whose offices are issued with motor
vehicles are not entitled to transportation allowance whether or not they actually usedsuch vehicles.
The COA Circular, further clarified, that the prohibition against collection of
transportation allowance when the office is assigned a vehicle shall apply only to thehead of the agency, unless the head of the agency specifically assigns a vehicle to
particular officials under him or to a particular unit under said official, when there aremore than one vehicle assigned to the agency; in which case, the said official who
himself or whose unit under him has been assigned a vehicle shall not be entitled totransportation allowance.
Furthermore, where the head of the agency does not specifically assign a vehicle to
a subordinate official entitled to transportation allowance, or to the unit or division of thesaid subordinate official, the latter shall be allowed to collect the transportation allowance
but shall refund the proportionate amount thereof whenever he avails of a government
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motor vehicle, corresponding to the number of days he has used the said governmentvehicle.
We have recommended the following remedial measures to correct the deficiencies
noted, to wit:
i. The City General Services Office shall see to it that all government
motor vehicles including heavy equipment, transportation equipment
and motorcycles shall be plainly marked “ FOR OFFICIAL USE
ONLY” in accordance with the specification provide for and must bear
government plate pursuant to COA Circular No. 75-6 dated November
6, 1975.
ii. The department/office head concerned to submit justification on
providing gasoline & oil to assign or issue motor vehicle to them
without marking “FOR OFFICIAL USE ONLY” when these are
strictly prohibited.
iii. The City government to designate area as garage to keep their motor
vehicle when not in use, after office hours, during Saturdays, Sundays
& holidays except when it is use on official purpose.
iv. The local finance committee (LFC) shall evaluate the necessity of the
request of department/office head for acquisition of new vehicle taking
into consideration the function of the department/office. In case, the
department/office has more than one (1) assign or issue vehicle the
oldest one shall be disposed in accordance with the rules on the matter
before it recommends to the Committee on Appropriation.
v. A Task Force Committee shall be created to conduct study or evaluate
on the necessity of the number of motor vehicles and motor cycles
assign or issue to the department/office. After evaluation, motor
vehicles and motorcycles no longer needed by the department/office or
custodian thereof shall be disposed of in accordance with the rules
and regulations on the matter. On motor cycle, the functions of the
office and the statement of duties and responsibilities of the custodian
thereof must be taken into consideration.
vi. Require the officials whose offices were issued with motor vehicles,
whether or not they actually used such vehicles, to refund the RATA,
pursuant to COA Circular No. 99-002 dated June 15, 1999.
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5. Fund Transfer to NGOs/POs
Funds transferred to NGOs/POs amounting to P7,290,263.78 remained unliquidated
as of the year-end contrary to Section 5.4 of COA Circular No. 2007-001. Part of the
amount equivalent to 44.16% or P3,219,137.45 were misclassified as such and
likewise failed to liquidate the financial assistance given.
Section 5.4 of COA Circular No. 2007-001 provides that “Within sixty (60) days
after the completion of the project, the NGO/PO shall submit the final Fund UtilizationReport certified by its Accountant and approved by its President/Chairman to the GO,
together with the inspection report and certificate of project completion rendered/issued by the GO authorized representative, list of beneficiaries with their
acceptance/acknowledgment of the project/funds/goods/services received. The validity ofthese documents shall be verified by the internal auditor or equivalent official of the GO
and shall be the basis of the GO in recording the fund utilization in its books of accounts.These documents shall support the liquidation of funds granted to the NGO/PO.
Review of the financial statements disclosed that funds released under the General
and Special Education Fund to Non-Government Organizations (NGOs) or People’sOrganization (PO) amounting to P7,290,263.78 remained unliquidated at year-end, as
shown below:
General FundSpecial
Education FundTotal
Beginning Balance 6,995,809.51 P 2,000,000.00 P 8,995,809.51
Add: Fund releases 10,891,227.28 100,000.00 10,991,227.28
Less: Liquidation – CY (7,987,065.33) (7,987,065.33)
Liquidation – PY (4,709,707.68) (4,709,707.68)Balance 5,190,263.78 2,100,000.00 7,290,263.78
Analysis of the account disclosed that out of the amount of P7,290,26378,P4,071,126.33 or 55.84% represents accounts of NGOs/PIOs not liquidated for more than
five years, while 44.16% or P3,219,137.45 were accounts of other groups/associationsgranted with financial assistance by the local government, which were also not liquidated
within the prescribed period. This account needs to be reclassified to another account inorder to distinguish it from the NGOs/POs account. The accounts consisted of the ABC
or “Liga ng mga Barangay” ILBACO, GSP, BSP, PNRC, United Way Philippines, etcmay not qualify as NGO/PO because of the nature of their incorporation and/ or there is a
law providing them such financial assistance from the LGUs, subject to availability offund.
Status and reason for non-liquidation of the accounts were not disclosed in the
notes to financial statements, details are as follows:
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Name of POs/NGOsAmount
Unliquidated
Unliquidated
for more
than Five
Years
(55.84%)
Amount to
be
Reclassified
(44.16%)
General Fund (GF)
Masikap MSME DevelopmentFoundation Inc. 125,000.00 125,000.00
Ayuda sa Tao450,000.00 450,000.00
Group Circle SEA-Kaunlaran 100,000.00 100,000.00
Association of Barangay Council 1,809,000.00 1,809,000.00
Iligan Investment Promotion Center 186,126.33 186,126.33Iligan Cooperative Development
Council 192,250.00 192,250.00
Boy’s Scouts of the Philippines- Iligan
City Council 75,000.00 75,000.00
Girl’s Scouts of the Philippines- Iligan
City Council 75,000.00 75,000.00
Macaraeg-Macapagal Board of Trustees 150,506.95 150,506.95
Philippine National Red Cross 250,000.00 250,000.00
Cooperative Union of Iligan85,000.00 85,000.00
National Statistics Office 164,835.501
64,835.50
JAL Women SEA Kaunlaran-Brgy DelCarmen 200,000.00 200,000.00
Chamber of Commerce & IndustryFoundation of Iligan 100,000.00 100,000.00
Federated Parents-Teachers &Community Association/ Federated
Parents-Teachers Association
400,000.00 400,000.00
Iligan City League of Brgy Councilmen,Inc. (ILBACO) 125,000.00 125,000.00
Bantay ng Bayan Iligan, Inc.
50,000.00 50,000.00
Iligan Society of Internists, Inc. 227,545.00
Center for Alternative Legal Forum &Justice
425,000.00 425,000.00
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Name of POs/NGOsAmount
Unliquidated
Unliquidated
for more
than Five
Years
(55.84%)
Amount to
be
Reclassified
(44.16%)
Sub-total 1,971,126.33 1,971,126.33
Special Education Fund (SEF)
Goodwill Mindanao Philippines 2,100,000.00 2,100,000.00
Sub-total 2,100,000.00 2,100,000.00
Total (GF & SEF) 7,290,263.78 4,071,126.33 3,219,137.45
This is a reiteration of CY2010 audit finding, but unfortunately the accounting
personnel did not offer any reasons as to the non-liquidation of the fund transferred to NGOs/POs. The absence of any alternative audit procedure to verify the extent of the
releases of the fund gives us some doubts such as, the recipients treated the fund as dole-out by the LGU; the organization may have been dissolved after receiving the funds; the NGOs/POs were not briefly informed on the requirements of the liquidation of the fund,
thus project initiated by NGOs/POs may not have been implemented.
We have recommended the following remedial measures to address thedeficiencies cited, viz:
i. Direct the City Accountant to demand immediate liquidation of fund
transferred to NGOs/POs. Render report for those who cannot submit
liquidation to the City Mayor and the appropriate committee in the
Sangguniang Panlungsod for the adoption of appropriate measures toprotect the interest of the city government.
ii. To safeguard fund transferred to NGOs/POs. the accountant and the
focal person in the implementation of the project should conduct pre-
briefing seminar on the reporting of the utilization of the fund and in the
implementation project before fund releases.
iii. Strictly follow the guidelines stated under COA Circular NO. 2007-01
dated October 25, 2007 on the grant of government funds to NGOs/POs.
iv. Reclassify the accounts of other groups/association.
6. Fund Transfer to City Barangays
Despite having an existing unliquidated funds of P25,216,305.78 out of prior year
releases, the City still released the sum of P27,387,668.00 for barangay development
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projects in violation of COA Circular No. 94-013 and the covering Memorandum of
Agreement (MOA).
The account Due from LGUs (44 city barangays) was a prior year (CY 2010)
audit finding which showed a balance of P51,325,833.46. Despite of our audit
recommendations, the balance had increased to P81,888,862.75 in CY 2011. We arereiterating same for management evaluation in the implementation of infrastructure projects dubbed as “Barangay Development Projects” (Projects) at the barangay level
through fund transfer to the 44 city barangays and/or recipient barangays.
Analysis and review of the account under the General Fund (GF) revealed that theamount of P28,170,660.09 or 34.40% was liquidated in CY2012 out of the prior year’s
balance of P81,888,862.75 which remained outstanding for more than two years. Thereview further showed that in Calendar Year (CY) 2011, 27 city barangays were given
additional fund transfer without requiring them to liquidate the previous year ’s fundtransfers. In CY 2012, additional fund transfer of P 27,387,668.00 was released despite of
the outstanding balances.
As of December 31, 2012, the accounts showed a balance of P81,105,870.66 asshown hereunder:
Beginning Balance, Jan. 1, 2012 P 81,888,862.75
Less: Liquidations, CY 2012 28,170,660.09
Balance 53,718,202.66
Add: Fund Transfer, during the year P 27,387,668.00
Balance - December, 2012 P 81,105,870.66
The fund transferred was covered by Memorandum of Agreement (MOA) between the SA (city) and IA (barangay). The utilization, liquidations and reporting are
provided in the MOA similarly with those stated in COA Circular No. 94-013.
The Audit Team sent confirmation letter to the 44 barangays but, only six havereplied as of January 25, 2013 and confirmed the balance as shown in the General Ledger
of the City Government except for Barangay Digkila-an which has a balance ofP12,717.75 instead of P1,769,700.00.
It has been observed during the interview process, most of the BarangayTreasurers (BT) was not able to forward the copy of the RCI, and the RCD to the CityAccountant Office to report the utilization of the fund as basis of the latter office to draw
the journal voucher to take up the reports.
The practice runs contrary to COA Circular No. 94-013 dated December 14, 1994,“Rules and R egulations in the Grant, Utilization and Liquidation of funds Transferred to
Implementing Agencies”, which clearly provides that:
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“4.6 Within ten (10) days after the end of each month/end of the agreed
period for the Project, the Implementing Agency (IA) shall submit the Reportof Checks Issued (RCI) and the Report of Disbursements (RCD) to report the
utilization of the funds. Only actual project expenses shall be reported. The
reports shall be approved by the Head of the IA.
4.7 The Source Agency (SA) shall draw a Journal Voucher to take up the
reports. The amounts to take up the liquidation per RCI shall be net the cashadvances granted by the IA to its accountable officers in accordance with
the Commission on Audit Circular No. 90-331 dated May 3, 1990.”
Aside from the observed practice, the projects was under the supervision of theOffice of the ABC President which have their own set of technical officials/employees
responsible for the preparation of program of works (POW), plans and specifications anddetailed engineering estimates and yet they do not rendered report to the SA as to the
status of the project’s implementation.
As a result, non-reporting of full and partial utilization of fund transferred to the SAthe account could not be properly adjusted due to absence of documentary evidence such
as RCI and ROD to support the recording and the status of implementation of the projectcould not be validated due to no terminal report rendered by the Office of the ABC
President.
We have recommended the following remedial measures to ensure the fullliquidations of fund transfer to the city barangays and the utilization thereof is in
accordance with the purpose of the fund:
i. Require the barangays the submission of their statement of
utilization/expenditures of the previous funds received as a pre-
requisite to the next release pursuant to the provisions of COA Circular
N0. 94-013 and the MOA.
ii. The City Accountant should issue demand letters to the Punong
Barangay/Barangay Treasurer for the submission of the required
report to liquidate the fund transfer.
iii. The City Accountant’s representative and the barangay record keepers
should sit together quarterly for the reconciliation of their accounts to
identify the reconciling items and to record immediately the
adjustments concluded.
iv. The Office of the ABC President shall provide the SA the status of the
project’s implementation for the latter to validate the completion of the
projects and determine whether the IA implement the projects in
accordance with the MOA.
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7. Barangay Development Projects
Barangay Development Projects amounting to P2,826,900 which was implemented
through Executive Order and Memorandum of Agreement (MOA) lacks theauthority from the Sangguniang Panglunsod as required under Section 22(c) of RA
No. 7160.
The General Fund Annual Budget for CY 2012 provides appropriations in theamount of P2,826,900 for Barangay Development Projects (Projects), Account Code
8919-250-130 under the Miscellaneous Economic Services-Others, (101-8000 for CapitalOutlay. The appropriated amount was part of the 20% Development Fund in the amount
of P146,468,982.
The Projects was implemented by virtue of Executive Order of the local chief
executive and MOA entered into by the City Mayor, in behalf of the city government and
the recipient city barangay. The projects are as follows:
Project Title Recipient Barangay Amount
Propose Construction of
Multi-Purpose Building
Abuno P 1,307,000.00
Proposed Improvement of the
Riprap Canal at Purok I-A
Del Carmen 105,000.00
Proposed Construction of
Multi -Purpose Hall (Phase I
Sta. Filomena 468,400.00
Proposed Roads Concreting at
Zone 6A & 7
Sto. Rosario 946,500.00
Total P 2,826,900.00
The utilization and implementation of the projects, although these are embodied
in the Appropriation Ordinance No. 12-5781-03 enacted on January 12, 2012, requiresauthorization from the Sanggunian Panlungsod as provided in Section 22 (c), Republic
Act No. 7160, the Local Government Code of 1991, read as follows:
“Unless provided in this Code, no contract may be entered into by the local chiefexecutive in behalf of the local government unit without prior authorization by the
sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous
place in the provincial capitol or the city, municipal or barangay hall.”
The appropriation ordinance describe the projects in generic terms such as
“Barangay Development Projects”. It did not state which of the 44 city barangays isrecipient, the amount and the name of projects to be funded therefrom.
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In support to this requirement, excerpts from the ruling of the Supreme Court inthe case of Hon. Gabriel Luis Quisumbing, et.al., vs. Hon. Gwendolyn F. Garcia, et.al,
G.R. No. 175527 promulgated on 08 December 2008.
“The question of whether a sanggunian authorization separate from the
appropriation ordinance is required should be resolved depending on the particularcircumstances of the case. Resort to the appropriation ordinance is necessary in order todetermine if there is a provision therein which specifically covers the expenses to be
incurred or the contract to be entered into. Should the appropriation ordinance, forinstance, already contain in such that all that the local chief executive needs to do is to
execute the contract, no further authorization is required, the appropriation ordinancealready being sufficient.”
“On the other hand, should the appropriation ordinance describe the project in
generic terms such as ‘infrastructure project’, ‘inter -municipal waterworks’, drainage andsewerage ‘flood control’, and ‘irrigation system projects’, ‘reclamation projects’, or
‘roads and bridges’ there is obvious need for a covering contract for every specific project that in turn requires approval by the sanggunian. Specific sanggunian approval
may also be required for the purchase of goods and services which are neither specifiedin the appropriation ordinance nor encompassed within the regular personal services and
maintenance operating expenses.
In conjunction to the Supreme Court ruling, the Commission (COA) issued COACircular No. 2010-014 dated April 22, 2010, directed the COA Officials including the
Audit Team Leader to disallow in audit expenses or contract entered into by the localchief executive not in accordance with the framework laid out in the ruling of the
Supreme Court.
We have recommended the following:
i. The local chief executive shall strictly observe the requirement under
Section 22 (c) of the Local Government Code (RA No. 7160) before
entering contract specifically when he appropriation ordinance describe
the project in the generic terms or the purchase of goods and services
not specified in the appropriation ordinance or part of the regular
personal services and maintenance and other operating expenses.
ii. Submit the approved SP Resolution for entering MOA with the
individual barangay official of the recipient barangay.
iii. The city accountant to see to it that contract or MOA entered into by
the local chief executive in behalf of the city government is supported
with SP Resolution approving the contract or MOA.
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The grant of said allowances from the ASBB is contrary to the above cited proviso
of the cited law and the Joint Circular of DECS, DBM and DILG. It could have been prudent had the appropriation was sourced from the General Fund.
Along this line, the Commission (COA) has ruled that SEF cannot be legallydisbursed for the payment of teachers’ additional monthly allowance. However, the localgovernment unit is empowered to provide additional allowance and other benefits to
public elementary and high school teachers stationed in or assigned at theCity/Municipality when its finances allow, as contained in the following decisions:
COA Decision No. 96-287 dated June 4, 1996, denying the request of then Manila
City Mayor Alfredo Lim for authority to use the SEF for the grant of monthly allowancesto teachers assigned in that City, however, the local government unit (LGU) has the
power to appropriate such amounts from the General Fund.
COA Decision No. 96-651 dated November 21, 1996 granting a compensatoryallowance of P1,000.00 per month to teaching and non teaching personnel of Mandaue
City, but this shall be taken from the General fund and not from the Special EducationFund.
Thus, had this appropriation was properly allocated to construction of school
buildings, the shortage of classrooms could have been reduced.
We have recommended the remedial measures stated hereunder to ensure that the
SEF shall be appropriated only as provided in RA No. 7160.
i. The Local School Board shall stop appropriating additional allowance
to nationally paid elementary and secondary public school teachers
assigned or stationed in the City; and
ii. Although its not mandatory, the City Schools Division Superintendent
may ask or request from the city government to provide additional
allowances to elementary and secondary public school teachers assigned
or stationed in the City.
9. Supplemental Feeding Program-Payment to Contractor
Contractor for the delivery of foodstuff for the first 30 days supplemental feeding
program under the early childhood care & development was paid in full of the
contract price of P1,998,155.00 despite no complete delivery was made by the
contractor as of the date of payment contrary to Section 88, P.D. 1445.
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A review of the transaction for the procurement of foodstuff for the first batch ofthe supplemental feeding program under the early child development (age 3 to 4)
disclosed the following:
1. Public bidding was conducted, only one bidder submitted the bid documents,
passed in the technical and financial evaluation, post qualified, declared assingle calculated and responsive bid (SCRB).2. BAC recommended to award the procurement to the contractor and approved
by the local chief executive per BAC Resolution No. 101-201 promulgated onMay 28, 2012, a Notice of Award was issued and accepted by the
proprietor/contractor on May 28, 2012.3. The contractor after posting the performance bond, a notice to proceed was
issued and acknowledged by the proprietor/contractor on June 6, 2012.4. The contractor was given 10 calendar days to deliver the foodstuff per PO
(Purchase Order) dated May 28, 2012.5. The contractor, evidence by the charge invoice No. 0497 & 0499dated June 6,
2012 (Annex A) have completely delivered the foodstuff (Annex B) and properly acknowledged/received by a representative from the City Social
Welfare and Development Office or CSWDO (Annex C).6. The delivery was inspected by a representative from the City General Services
Office (Annex D).7. The foodstuff was paid on July 6, 2012 per Check No. 315394, in the amount
of P1,918,228.80 net of VAT (value added tax).
According to the responsible official of CSWDO, the Supplemental FeedingProgram started on June 1, 2012 and ends on July 18, 2012 or total of 3O school days.
The foodstuff is perishable goods. Delivery of these should be made a day before
and/ or three days before the schedule feeding program for day care centers locatedwithin city limits or coastal area and hinterland barangays, respectively. Advance and/or
complete delivery thereof may rotten or deteriorate faster the condition of the foodstuffand loss its nutrition value thus the objectives of the program to improve the nutritional
condition of the pre-schooler (ages 3-4) may not be attained.
Payment to contractor shall be made base on the actual delivery of the procuredfoodstuff or after full or complete delivery. The full payment of the contract cost before
July 18, 2012 is contrary to Section 88, P.D. 1445, which states that:
x x x. No payment, partial, or final, shall be made on any such contract exceptupon certification by the head of the agency concerned to the effect that the services or
supplies or materials have been rendered or delivered in accordance with the terms ofthe contract and have been duly inspected and accepted.
The acceptance by the representative of the alleged full delivery of the foodstuff
and inspection conducted was the proximate cause of the full payment of the contract
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price. Knowing the fact that the procured and delivered foodstuffs are perishable goodsand good for 30 school days feeding program.
As a consequence of the acts committed, the contractor was paid in advance for
undelivered foodstuff in the amount of P66,051.67 equivalent to 10 days feeding
program.
We have recommended to management that:
i. Delivery of foodstuff for the supplemental feeding program should be
made a day before and /or three days before the schedule feeding
program for day care centers located within the city limits or coastal
areas and hinterland barangays, respectively, to sustain the nutrients
of the foodstuff.
ii. Payment to contractor should be based on the actual delivery or as a
billed by the contractor whichever is appropriate.
B. Value for Money Audit
10. Kilos Asenso Support (KAS) Fund- not implemented
Infrastructure projects funded under the Kilos Asenso Support (KAS) Fund in the
amount of P6,301,363.00 received by the City Government from the Department of
Budget & Management remained intact since CY 2009 was not implemented thus
the desire social benefits were not attained.
The Kilos Asenso Support (KAS) Fund emanates its legal existence from Republic
Act No. 9498 or the FY 2008 General Appropriations Act, as the national governmentcounterpart fund to support the programs and projects of LGUs.
Pursuant to this mandate, the Department of Budget & Management (DBM) issued
Budget Circular No. 2009-1 dated March 10, 2009 to provide the guidelines in the releaseand utilization of the KAS Fund.
The KAS Fund shall be utilized to sustain development and provide for
deficiencies for the following:
1. Construction of farm-to-market roads, small bridges and day care centers;2. Improvement of potable water;
3. Investment in agro-forestry projects; and4. Other similar growth enhancing projects designed to uplift the socio-economic
standing of LGUs.
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4.1 Growth enhancing projects refer to those which shall promoteemployment, education health and housing in the LGUs.
The City Government of Iligan (CGI) received the KAS Fund from the DBM
Region X on July 9, 2009 intended for the following projects:
1. Construction of 260.0 linear meters, Purok 5, Mibala, Barangay Tipanoy, IliganCity-P 1,000,000;
2. Construction of 260.0 linear meters, Purok 3, Mibala, Barangay Tipanoy, IliganCity-P 1,000,000;
3. Construction of 150 cm casing Production wheel, Pumping Station, etc., PurokAnsay, Sta Filomen, Iligan City- P3,301,363; and
4. Improvement of Drainage System, Purok 5, Barangay Tipanoy, Iligan City.
Also, CGI received from the OP-PSF the amount of P200,000 on March 6, 2008,for the construction one unit two classroom school building for Acmac Elementary
School, Barangay Acmac, Iligan City.
As of September 30, 2012, the financial records of the CGI disclosed that the KASFund and OP-PSF was still intact or the proposed projects were not implemented since
then, thus the purpose and the desired social benefits to be derived from were notattained.
Inquiry from the City Engineer whether he had prepare the program of work (POW)
for those projects disclosed that he was not aware of the released projects from thenational government. Also, the Punong Barangay of the recipient barangay was not
aware of the existence projects in their respective locality.
The DBM guidelines under 4.3, suggest that the sources of the LGUs counterpartfund shall be taken from the appropriation of the 20% of the Internal Revenue Allotment
(IRA) for development project. The review of the CY 2012 Annual Investment Programshowed no amount appropriated from the 20% development project as LGUs counterpart
fund to augment the KAS fund.
There was no record to show as to who prepared the details of the project, or ifthere such, the requester was not aware of the released of the KAS Fund. Thus, there is
absence of monitoring and coordination among key departments to give information tothe local chief executive of the availability of KAS Fund and the purpose of utilization
for the latter to include in his addenda for prioritization in the implementation thereof.
We have recommended the following remedial actions for management to giveutmost priority in the implementation of the projects, to wit:
i. expedite the preparation of the individual program of work and
coordinate with the recipient barangay for the clearing operations for
the project site;
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ii. instruct the local finance committee (LCF) to ensure the allocation of
the necessary counterpart fund from the 20% IRA for development
projects;
iii. the City should strictly abide with the DBM Circular in the utilizationand implementation of the projects programmed from the KAS Fund;
and
iv. in case the projects will not be implemented during the year the CGI
shall return the KAS fund to the national government through the
National Treasury.
11. Supplemental Feeding Program- Nutritional Status
The required five days a week supplemental feeding program for 120 days was notimplemented thus the expected output to improve the nutritional status of the target
children was not sustained.
The supplementary feeding Program (SFP) is the provision of food in addition tothe regular meals, to currently enrolled day care children as part of the DSWD’s
contribution to the Early Childhood Care and Development (ECCD) program of thegovernment. For CY 2011 which was adopted for CY 2012, food supplementation will be
in a form of hot meals to be served during break/snack time in the morning session orduring break/snack time in the afternoon to children in a day care centers five (5) days a
week. The parent will manage the feeding program based on a prepared meal cycle usingavailable indigenous food materials. The children will be weighed at the start of the
feeding and a monthly weighing thereafter will be done to determine improvement andsustenance in their nutrition status.
The target beneficiaries of the program will be the 3-4 year old children and those 5
year old children not catered in the DepEd preschool children but enrolled in the 49,527day care centers nationwide including Autonomous Region in Muslim Mindanao
(ARMM).
The program has four (4) objectives, (1) to provide augmentation support forfeeding program for children in LGU manage day care centers using indigenous food
and/or locally processed foods equivalent to 1/3 of Recommended Energy and NutrientIntakes (RENIs); (2) to improve knowledge, attitude and practices of children enrolled in
day care centers, parents and caregivers through intensified nutrition and healtheducation; (3) to improve and sustain the nutritional status of all the target children; and
(4) to ensure that children are accessed to any appropriate health unit regarding theirnutrition-related problems, including overweight and at risk- of malnutrition conditions.
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The program was implemented in partnership with the LGU-Iligan. AMemorandum of Agreement (MOA) was inked between the DSWD Field Office (FO),
Region 10 and the city government of Iligan.
The program cost per child enrolled in day care centers is P10.00 for viand and
P2.50 for rice per feeding session. In CY 2011, The FO released/transfer the fund to theCity Government of Iligan (CGI) the amount of P 8,138,400 and P639,325 for the cost ofviand and eating & cooking utensils, respectively, for 6,782 children enrolled in 127 day
care centers manage by the city government. In CY 2011, the amount of P 4,171,216.86was incurred leaving unexpended balance of P4,606,508.14. The cost of rice was
provided by the FO.
Out of the unexpended balance, the amount of P4,559,470 was earmarked for thisyear feeding program equivalent to 68 days to be reckoned from June 1, 2012 up to
October 2, 2012. To complete the target 120 days feeding program, the remaining 52days was filled-up by the 17 days backlog in CY 2011 due to Typhoon Sendong,
continued on May 3 to 31, 2012 and the 35 days (October 3 to December 17, 2012) was provided by the organized parents, volunteers and stakeholders for the viand and NFA for
the needed rice.
Although the 120 days feeding program was followed, the expected result of the program which is to improve and sustain the nutritional status of the target beneficiaries
was not achieved due to the following:
1. The program was planned for four (4) days a week instead of five (5) days aweek thus, the implementation period was longer or Seven months. It was told
during the interview that every Monday of the week was set for delivery of thefoodstuff.
2. Based on the interview, the number of beneficiaries during the actual feeding
program exceeded the official list of enrolled children in the day care centers assubmitted by the day care workers. The submitted official list was the basis for
the release of the fund by the FO.
3. The counterpart of the organized parents, volunteers and other stakeholders wasnot at par with the duly funded program but only to sustain the 120 days
supplementary feeding program.
We have recommended the following:
i. The implementer agency should adopt the required five (5) days a week
supplementary feeding program and prepare separate schedule for
supplementary feeding program for day care centers located in the
coastal areas and hinterland barangays
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ii. To see to it that the delivery period for foodstuff shall be made a day
before the schedule feeding program for five (5) days consumption.
iii. Day care workers should conduct constant dialogue with the organized
parents informing them the objectives of the program and the fund
release is limited to the official list submitted to the FO.
iv. Account for the excess children from the official list submitted per day
care centers and present with the city government for providing the
appropriate fund needed as a local counterpart fund to the program.
Settlement of Accounts
For calendar year 2012, the Audit Team was able to issue total suspensions of
P4,623,920.20 on the financial transactions of the City Government which lacks certainrequirements that may result in pecuniary loss to the government and total disallowances
of P1,996,059.41 for transactions that were deemed illegal, irregular, unnecessary,extravagant or unconscionable in whole or in part. Total settlements amounted to
P1,557,161.03 for suspensions and disallowances. The details of suspensions anddisallowances and the corresponding settlements for CY 2012 are shown in detail in the
following table:
Audit ActionBeginning
Balance
Issued in CY
2012Settlements
Balance,
December
31, 2012
Audit Suspension 1,102,342.22 4,623,920.20 1,325,311.08 4,400,951.34
Audit Disallowance 39,084.06 1,996,059.41 218,458.38 1,816,685.09Audit Charges 13,654.77 - 13,391.57 263.20
Total 1,155,081.05 6,619,979.61 1,557,161.03 6,217,899.63
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Part III-Status of the Implementation of Prior Years’ Audit Recommendations
Of the 32 prior years’ audit recommendations, nine were fully implemented, nine
were partially implemented and 14 were not implemented.
OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementatio
n (Full,
Partial, On-
going, or Non-
implementatio
n)
Reason for Partial/
Non-
implementation
I. For the Year Ended December 31, 2011
A. Value for Money Audit
1. Non-Utilization of Loan
The city government hadwasted government funds in the
amount of P3,126,800.00 as an
interest for one on one loan
secured with the DBP in the
amount of P47.0M at 6% per
annum for the non-
implementation of the projects
funded out of the proceeds of
the loan. Likewise, the
amortization of the loanamounting to P75.0M was not
included in the annual budget
for Calendar Year 2011.
Page
28,
AARCY
2011
Recommendations:
We recommend the following
remedial course of actions to
prevent the recurrence of same
in availing credit financing withthe a Government Financial
Institutions (GFIs) , viz:
i. The proponent(s) of the project(s) source from the
proceeds of loan should
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OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
adequately plan and
program the proposal project before negotiatingloan with any Government
Financial Institution(GFI’s). The proposed
project should be includedin the three (3), five (5) or
ten (10) years development plan of the City
Government.
ii. As soon as the GFI’sapproved the loan, the
proponent shall coordinatewith City Engineer, the
General Service Office, theLFC and the BAC for theconduct of pre-procurement
process to ensure timelyimplementation of the
propose project.
iii.
Upon release of the loan, theBAC shall award the project
to the lowest calculated &responsive bid (LCRB).
iv. The local LCF shall reviewall the secured loans by the
city government and provides schedule loan
amortization including the projected interest expenses
to the City Budget Officer,for inclusion in the Annual
2. Financial assistance for flood
victims of Typhoon Sendong
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OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
Financial assistance received in
checks and cash in the totalamount of P363,541,553.22for the
flood victims of “Typhoon
Sendong” have remained intact
and deposited with the LBP and
DBP for the accounts of the City
Government of Iligan. Likewise,
as of January 31,2012 no
disbursements was recorded.
Page
30,
AAR
CY
2011
We recommend the followingremedial measures to ensure
accountability, transparency, and
enhance efficiency and
effectiveness in the proper
accounting of the fund, utilization
must comply to appropriate law,
auditing rules and regulations and
the implementation of the
identified infrastructure projects
will enhance efficiency and
effectiveness in order to attain the
intended purposes for which the
fund was received, viz:
i. The City Treasurer to openan account either with the
LBP and/or DBPspecifically for calamity
fund for “Typhoon
Sendong” to ensuretransparency andaccountability;
Not
Imple-
mented
The City
Treasurer, instead
to maintain one
account for
Typhoon
Sendong Victim
or the Fund had
open one account
each at DBP and
LBP, both of
Iligan Branch.
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OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
ii. The City Treasurer is
required to deposit futurefinancial assistance received
and caused the transfer ofsaid fund deposited to the
LBP and DBP, as validated by the respective head of
the bank, to said newlyopened account to fast track
monitoring, facilitateverification of the account
balances and ensures thataccount debited/credited tothis account is exclusively
for the account of “TyphoonSendong “.
Not
Imple-mented
Due to failure to
follow ourrecommendation
in No. i,
monitoring and
verification of
the fund balance
could not be
ascertained
immediately as
we have to verify
bank statementsof two banks.
Recording of the
disbursements
are
also posted
independently to
each bank
accounts
depending which
bank have fund
balances.
Collections or
donations
received either
through the bank
or by the City
Treasurer are
recorded in the
said bankaccounts.
However, we
noted, there were
times the cashier
committed error
in depositing
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OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
checks. For
instance, LBPchecks were
erroneously
deposited with
the DBP or vice
versa. So
adjustments have
to be made by
the City
Accounting
Office.
iii. The SangguniangPanlunsod shall pass and
approve the Special Budgetfor the utilization of the
calamity fund in order theCity Mayor can zero in or
focus the implementation ofidentified infrastructure
projects aims on the welfare
of the flood victims.
SP Resolution
was passed to
guide the City
Accountant
Office for the
proper charging
of the
expenditures
particularly forthe cash
donations
received for
which no
specific purpose
was stated.
However, we
noted of several
SP Resolutions
was passed to
modify the
original SP
Resolution
especially if the
amount of the
program of
expenditures was
insufficient.
This is the
subject of an
anonymous letter
addressed to
Commissioner
Heidi L.
Mendoza, a copy
which was also
sent to the RD
Alfredo Reyes.
RD Reyes
constituted a
special audit
team under RO
X Order No.
2012-X-013
dated 2/22/12.
The special auditteam has
prepared the
report; which is
currently being
reviewed by the
Regional Director.
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OBSERVATIONS AND
RECOMMENDATIONS
REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iv. To fast track the
implementation of thecalamity projects/programs,
the Budget Office shallimmediately release the
fund appropriated for thecalamity fund
projects/programs; TheBAC Chairman shall give
utmost priority in the timeschedule of the conduct of
public bidding for theinfrastructure projects, theCity Accountant’s Office
shall designate accounting personnel to expedite the
processing of disbursementvouchers related to calamity
funds and the City Engineerto direct other divisions of
the City Engineering Officeto prepare the plan and
specification of the building, the detail
engineering estimate, the program of work, the
construction materialsneeded and the Procurement
Project Management Plan(PPMP) and the General
Service Office to assist theBAC in the conduct of
procurement activities.
Fully
Imple-mented
v. The City Accountant shall
render progress financialreport copy furnished theCity Auditor and submit all
financial records, such asdisbursement vouchers,
payrolls, if any, monthly bank reconciliation
The financial
report prepared
monthly/
quarterly by the
City Accountant
Office reflects
the accuracy of
Fund received,
Fully
Imple-
mented
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57
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
i. statements together with the
checks encashed or paid bythe bank for post audit and
final custody.
utilization and
balances by
purposes
particularly the
Shelter
Assistance from
the DSWD.
ii. The implementer office (TaskForce Committee) shall
coordinate with othernational government agencies
(DSWD & DPWH) to ensure proper implementation of the
infrastructure projects andsee to it that the utilizations
and disbursements of thecalamity fund must comply
with appropriate law,auditing rules and
regulations. Strictly complythe DSWD shelter assistance
guidelines and render
progress and terminal reportto the City Mayor, City ViceMayor and City Councilors
copy furnished the CityAuditor and the concern
offices;
The
construction of
the Shelter
Assistance
funded by the
DSWD was at
a snail pace
due to lack of
relocation sites.
The City
Government
has no
sufficient land
toaccommodate
the more than
5,000 Typhoon
Sendong
Victims
entitled to
Shelter
Assistance.
Ongoing
iii. Related government
expenditures incurred by the personnel of the implementing
office in connection with theimplementation of thecalamity fund projects shall be
proper charged to the regular
budget appropriated for thatoffice;
Fully
Imple-
mented
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58
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
The City Mayor and upon
request by higher authorityor by the concerns
Department Secretary shallrender final report, copy
furnished the Vice Mayorand SP members and the
City Auditor.
The City Social
Welfare andDevelopment
Office or the
front office in
the monitoring
of the well
being of the
Typhoon
Sendong
Victims have
not yet comeup with the
Terminal
Report.
i. In case the negotiation onthe acquisition of the 15.9has. failed, seek
assistance/intervention fromthe national government for
the acquisition of the lot.
The City Gov’t.
of Iligan (CGI) is
doing all their
best effort in
acquiring more
lots for theTyphoon
Sendong Victims.
The CGI have
identified areas
suitable for
relocation sites,
yet they have no
enough fund to
acquire said lots.
They have
already initiatedtalks with the
DSWD and the
DBM for the
allocation of
fund to acquire
the lots.
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59
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
3. Unserviceable Motor vehicles
and Motorcycles The absence of physical facilities
and appropriate measures to
govern or to regulate the proper
use, care custody, maintenance
and reporting on the conditions of
the government motor vehicles
numbering 465 fleets may result
in the loss or breakdown of the
same, inevitably results in loss of
man-hours and efficiency.
Page
33
AAR
CY
2011
Recommendations:
We recommend the following
remedial measures to ensure that
government property are
efficiently use, unserviceable
property is properly safeguarded
prior to the disposal thereof, and
reporting accountability must be
strictly required for proper care
and maintenance:
i. The city government shallformulate policy guidelines to
regulate for proper observanceon the use, care and proper
maintenance, custody andreporting accountability of its
heavy/office equipmentconsidering the number of
government motor vehicles itowns and maintains.
Not
Imple-
mented
We are not being
inform whether
there is a draft
policy on our
suggested
recommendation to
address propercare, use and
maintenance of the
motor vehicles of
the City
Government of
Iligan (CGI).
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60
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
ii. The city government shall
construct physical facilitiesto serve as one stop shop
such as (1) storage ofunserviceable government
property to prevent the loss,destruction and rapid
deterioration of same,(2)motor poll or garage and (3)
repair and maintenance shopof motor vehicles.
Not
Implemented
The CGI has not
yet seen thesignificant
impact of the
suggested
recommendation
iii. The CGSO to renew every
three (3) years theARE/MR of all
government property,conduct actual inspection
on the condition of sameand inventory listing of
missing accessories;
Not
Imple-
mented
Except for the
ARE/MR signed
by the Outgoing
City Auditor and
his and those
who have retired
from the
government
service, all other
AREs/MRs was
not renewedevery three (3)
years. The City
General Services
should now start
the renewal of all
AREs/MRs
signed by the
City Government
Employees in
view of Changes
of LCE after the
Mid-term
election this
coming May 13,
2013.
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61
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iv. The CGSO shall maintain
historical record of eachoffice equipment & other
heavy equipment to monitorthe efficiency and cost of
maintenance as a referenceguide in management
decision whether to maintainor purchase a new unit. All
department office/head withassigned office equipment
shall maintain the samerecord;
Not
imple-mented
The City General
Services Office(CGSO) did not
give information
whether they
have
implemented the
suggested
recommendation.
We still opine
that the
suggestedrecommendation
will help
management in
assessing
whether old
equipment will
be maintained or
retired due to
(high) cost of
maintenance and
(reduce)
efficiency and
replace with a
new or brand
new. Thus,
maintaining of
record of all
types of
equipmentincluding motor
vehicles are
very significant
to every city
department/office.
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62
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
v. The end user or
operator/driver thru theirDepartment/office head shall
submit written report to theCGSO on how the office
equipment becameunserviceable together with
the Property Return Slip. TheCGSO shall prepare the
Inspection & Inventory ofUnserviceable Property
(IIRUP), conduct actualinspection and list down
missing accessories, tow andreceive the motor
vehicles/motorcycles/ otherequipments and deposit or
store to the designatedwarehouse.
Not
imple-mented
The CGSO have
not sent notice to
our office whether
they have
implemented the
suggested
recommendation.
The
recommendation
will properly
address the habitual
practices observed
that unserviceable property will be
reported or brought
to the attention of
the Audit Team
Leader when all its
vital parts are
already missing.
The submission of
written explanation
from the driver or
the departmenthead concern
together with
Return Property
Slip upon the said
property is
determine
unserviceable due
to wear and tear or
beyond economic
repair to the CGSO
is necessary for thelatter to prepare a
contingency plan to
secure the property
from wanton
pilferage of its vital
parts.
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63
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
vi. The CGSO shall immediately
dispose the unserviceablegovernment property pursuant
to Section 79, PD 1445.
While the CGSO
have requested
from the Audit
Team Leader for
Technical
Assistance to
determine the
reasonable value
of the
unserviceable
property for
purposes of
disposal through public auction
and after COA
Engineer have
determined the
final assessed
value yet CGSO
have not
informed the
Audit Team
Leader whether
or not they have
disposed subject
unserviceable
property.
Partially
imple-
mented
vii. The CGSO shall demand from
the end user or operator the
replacement or refund of themissing motor
vehicles/motorcycles accessoriescopy-furnished the office of the
City Auditor; and
Not
Imple-
mented
The CGSO failed to
furnish the Audit
Team Leader of any
demand letter
addressed to the
concern driver/
employee for missingmotor vehicles/motor
cycles accessories.or
equipment discovered
during turnover of
unserviceable
government motor
vehicles or motor
cycles.
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64
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
viii. Repairs of equipment shall
be done or undertaken by acompetent
mechanic/technician in orderto put them in operational
order. Prohibit dismantling ofthe office equipment or other
equipment except uponwritten order of the
Department/office head andafter a certification of the
availability of fund by theCity Accountant for the
necessary repairs to assurescompletion of repair and
avoid possible loss ormisplacement of spare parts.
The CGI has
employed
mechanic to
undertake repair
of its motor
vehicles in case
of minor repair
jobs. However,
whether the
dismantling or
removal of the
parts to be repair
are done withthe approval of
the department
head concerned
and the required
CAF by the City
Accountant
before any repair
be undertaken
are complied
with are still to
be observed.
Partially
imple-
mented
B. Financial and Compliance Audit
1. Cash Disbursing Officers
Cash Disbursing Officers account
has increased by 9,678,814 or
131%,liquidations/refunds of
prior years accounts was 652,945
or measly 8.12% and probable
loss of in the amount of
P3,981,625.62 or 53.89%, thus,
resulting also in the overstatement
of Government Equity by
P7,388,823.
Page
36
AAR
CY
2011
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65
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
Recommendations:
We recommend the following
remedial measures to fast tract the
liquidations/refunds of prior years
cash advance granted to Special
Disbursing Officers, we request
the City Accountant to:
i. Sent notice of liquidation/refundto the Special Disbursing Officer
(SDO), still employee in the citygovernment for the immediate
settlement of his/her cashadvance. Copy furnished the City
Legal Office and the Commissionon Audit. After six (6) months,
the notice was received, yet noaction taken by the concern
SDO/employee, request the CityLegal Office to instituteadministrative charge.
After the
issuance of COA
Circular No2012-004 or in
the early part of
December 2012,
the City
Accountant have
sent letter/notice
to the concerned
SDO. As we
observed there
are those have
made full
refunds, partially
returned the cash
advance and
some others
have not refund
yet.
Partially
Imple-
mented
ii. A separate notice of
liquidation/refund to former
SDO who have already retired,resigned and separated from theservice but are still living for the
immediate settlement of his/hercash advance. Copy furnished the
City Legal Office and theCommission on Audit. After, six
Same condition
as stated above
Partially
Imple-
mented
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66
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
(6) months, the notice was
received, yet no compliancethereof by the former SDO,
request the City Legal Office toinitiate the filing of appropriate
charge under the Revised PenalCode in the court within the City
of Iligan;
iii. Identify and document those
former SDO but already deadand submit to the Sangguniang
Panlungsod for the adoption of aresolution to request the
Commission for the write-off oftheir unliquidated cash advance.
In this case, the City Accountantshall properly coordinate with the
City Auditor for his comments,evaluation, review and
submission of additionaldocuments if needed in the
request.
Not
imple-
mented
The City
Accountant
failed to
documents thosedead’s SDO for.
Neither SP
Resolution was
furnished to the
Audit Team
Leader for the
write-off the
dormant
accounts.
iv. Institute measures to limit thenumber of SDO’s to be granted
with cash advance and see to itthat the requirement on the
bonding of the SDO shall bestrictly adhered to and no cash
advance shall be granted unlessit is for public purpose and
availability of sufficient
appropriation is provided andcash advance request tocircumvent the procurement law
must not be allowed.
The City
Accountant have
been very
cautious
whenever a cash
advance be
granted to
concern city
officials/employ
ees on therequirement of
bond and its
purpose. The
Number of
SDOs have been
reduced.
Fully
Imple-
mented
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67
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
2. IDPP 1 & IDPP 2
The Power Plant (IDPP 1 &IDPP 2) which was finally
turnover by PSALM/NPC to theCity Government on December
16, 2010 was notrecorded/booked in the latter’s
book of accounts, thus, the PPEand Government Equity was
understated by P350,101,622.53,the amount which the former
owed to the latter for unpaid RealProperty Tax, as of March 2007.
Page
38
AAR
CY
2011
Recommendations:
We recommend the following
remedial course of actions to
rectify the observe audit
deficiency by requiring the City
Accountant to:
i) Book/ record the Power Plant at a
book value equal or equivalent ofthe unpaid RPT from
NPC/PSALM as advertised onApril 2, 2007 in the amount of
P350,101,622.53.
ii) Adjust the contra accounts underthe General Fund and Special
Education Fund for their
respective shares of the delinquentreal property tax as recorded.
Ongoing In the recent COA
action on the
reasonableness of
the price of the
IDPP for the city
government to
dispose the power
plant, ownership has
yet to be determine
through judicial
proceeding due to
court action made by NPC with the
Regional Trial Court
of Iligan City.
Although the
PSALM and NPC
have turnover the
power plant to the
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68
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
city government in
the later part of
Calendar Year 2011
which became as
our justification of
our audit
recommendations.
3. Job Order (JO’s) Employee
The City Government had
appropriated funds for Security,
General and Janitorial Services,
averaging monthly of 3,229 JobOrders (JOs) Personnel, in the
amount of P59.2M and spent P
82,421,798.34 for undefined local
projects contradicts Section 77,
RA 7160 and the number of JOs
hired is excessive runs counter to
COA Circular Nos. 85-55A and
2002-003.
Page
40
AAR
CY
2011
The audit finding
on the Job Orders
(JOs) and Casuals
was restated in theAnnual Audit
Report (AAR) of
the city
government for
Calendar Year
(CY) 2012 as one
of the Audit Foci
for the Local
Government Units
(LGUs)
Recommendations:
We recommend the following
remedial measures to rectify the
foregoing practices and to ensure
that funds appropriated for the
hiring of personnel through job
orders will be made available to
PAPs pertaining to the general
welfare and basic functions and
services beneficial to the city
constituents, viz
i. The City Mayor may employeeemergency or casual employees or
laborers paid on a daily wage or
There are very
few JOs hired
for the city
Partially
Imple-
mented
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69
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
piece of work basis and hired
through job orders for local projects authorized by the
Sanggunian Panglunsod pursuantto section 77, RA 7160 (LGC)
and see to it that these local projects are consistent with
Section 16 and within thoseidentified in Section 17 of the
LGC.
project clean
and green program and
those identified
projects under
Section 17 of
the Local
Government
Code.
ii. Limit the number of personnelhired on job orders by evaluating
the mission and thrust of theconcern department/office
whether the services needed issupportive to the implementation
of their objectives.
There are some
offices withassigned JOs
but the
number have
exceeded the
vacant position
of their
respective
office.
Partially
Imple-
mented
iii. Limit the expenditures on GeneralServices, Janitorial Services andSecurity Services and re-visit
COA Circular No. 2002-003 asamended, as to what particular
object of expenditures may be properly charged to these
accounts.
Most of the JOshired their wages
are charged to
these account and
some are not
rendering the
services for the
wages they were
paid particularly
those assigned in
the various city
departments/offices. The
wages of these
JOs are properly
charged to
Personal
Services.
Partiallyimple-
mented
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70
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iv. Concern Department/Office Head
to submit the PAPs and justify thehiring of personnel thru job
orders.
Same condition
as stated initem iii above
Partially
imple-
mented
Reiterated in the
AAR for CY2012.
v. Salary of hired JO’s personnelshall be charged to personal
services.
Reiterated in the
AAR for CY
2012
vi. In case the city government needs personnel to maintain the
orderliness, sanitation andhygiene, cleanliness,
beautification and good ambiancein the various offices, hire the
services of manpower agencyspecializing for janitorial services.
4. Overtime pay
Overtime pay in the amount of P
1,867,085.29, out of it,P382,494.45 pertains to
Buhanginan (city government)Voice, paid to some city
government employees forservices rendered beyond regular
office hours and during weekendsand holidays for works or
activities, some of which are notallowable pursuant to National
Budget Circular No. 410 datedApril 28, 1990.
Page
45
AAR
CY2011
Recommendations:
We recommend the following
remedial measures to rationalize
the grant of authority to render
overtime with compensation, viz:
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71
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
i. The head of the agency and/ or the
local chief executive shalldetermine among the offices of
the city government who will begranted to render overtime base
on the IRR of MemorandumCircular N0. 228 (NBC No. 410
dated April 28, 1990). For this purpose, an executive order
should be issued.
As observed
the Number ofdepartment/offi
ce rendering
overtime
services was
reduced.
Fully
Imple-mented
ii. The department/office head of theconcerned department/office as
determined or identified by theLCE shall identify the specific
activities covered by the IRRrelated to the functions of their
department/office.
Same condition
stated above.
Fully
Imple-mented
iii. The department/office head of theconcerned department/office shall
state the purpose, duration, list ofemployees, justification and thesource of fund in their request for
authority to render overtime withcompensation.
Fully
Imple-
mented
iv. The concerns department/office
head shall strictly follow thefunding source and cost limitation
provided in the IRR (NBC No.410).
Fully
Imple-
mented
v. The department/office head of the CityAdministrator’s Office and HRMO to
revisit Section 1 (d) in relation toSection 6 of Administrative Order No.
103, of the Office of the President and
CSC and DBM Joint Circular No. 2,series of 2004, as amended by Joint
Circular No. 2 A, series of 2005 foradoption as a policy on employeerendering overtime.
Some department
/office employees
are rendering
overtime services
base on
Compensation
Time-Off.
Fully
Imple-
mented
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72
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
vi. Stop the granting of overtime with
compensation to BuhanginanVoice for extra works rendered
during their practices after officehours, weekends, and holidays.
Ongoing
5. BAC Honorarium
Honoraria of the personnel
involved in the procurement
processes was sourced from the
General Fund appropriation of P
2.0M instead of P 330,663collections source from the
specific procurement activities
provided in DBM Budget Circular
2007-3, thus payment of honoraria
in excess from the actual proceeds
may be considered irregular,
unnecessary and excessive.
Page48
AAR
CY
2011
Recommendations:
We recommend the following
courses of actions to rectify the
audit deficiency:
i) Require the Head, BAC
Secretariat to prepare report onthe number of projects bidded,
project completed or procurementcontracts awarded to support
claimed for honoraria.
The requirement
of this report as
attachement to the
claim of BAC
Honoraria was
superseded by
Notice of Award
pursuant to COA
Circular re-
documents to be
attached for every
disbursements of
government funds.
Partially
Implemented
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73
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
ii) Limit the payment of honoraria to
the source identified in BudgetCircular No. 2007-3 dated
November 29, 2007 and to thesavings from the local budget
approved by the SangguniangPanlungsod.
Not
imple-mented
The BAC
honoraria are
charged to thelumpsumappropriation for
honorium insteadof to the proceeds
of the sale of bid
documents. Werequest the CityAccountant Office
to strictly follow
the provision ofBudget Circular
No. 2007-3 dated November 29,2007.
iii) Limit the number of personinvolved in TWG to at least three
(3) per procurement project. The person with technical expertise on
a particular procurement projectshall be designated as chair.
NotImple-
mented
As observedthere are still so
many designatedTWG members.
iv) Provide BAC Secretariat to atleast three (3) members includingthe Head to each procurement
project.
Notimple-
mented
The compositionof BAC
Secretariat shall be
recomposed into
two such as BAC
Secretariat for goods
and services and
BAC Secretariat for
Infra Projects and
consultancy
services. These
will reduce theworkload of BAC
Secretariat
members who are
in the agency
procurement unit
(CGSO)
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74
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
6. Procurement of Consultancy
Services
The procurement of consultancy
services is not in conformity with
IRR, RA No. 9184 and the
services procured do not partakes
of consultancy as stated in
Philippine Bidding Documents
Edition I henceforth, payment of
services rendered may be
considered unnecessaryexpenditures and/ or waste of
government resources.
Page
50
AAR
CY
2011
Recommendations:
We recommend the following
remedial measures to rectify the
audit deficiency to ensure
compliance with the procurement
of consulting services and the
services needed must be either or
combination of the types of
consulting services provided in
the Philippine bidding documents,
edition I, viz:
i. Strictly follow the rules and
regulations on procurement ofconsulting services per the
revised IRR of RA No. 9184;
ii. Limit the contracting ofconsulting services to services
which the city government hasno technical expertise or
special skills.
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75
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
7. PAPs identified to be funded
from the LDRRM Fund(5 % Calamity Fund under General
Fund) not implemented
Programs, Activities, Projects(PAPs) approved by the
Sangguniang Panlungsod fundedfrom the LDRRM Fund
amounting to P 67,485,600 tomitigate disaster was not
implemented while P28,922,000for Quick Response Fund (QRF)
of which P7,529,213.37wasdisbursed for the relief and
rehabilitation operations aftermathof “Typhoon Sendong”.
Page
51
AAR
CY
2011
Recommendations:
We recommend the following
remedial measures to fast trackand enhance efficiency andeffectiveness in the
implementation of the variousPAPs identified to support the
disaster risk managementactivities, viz;
i) The City Government shall fully
establish and organize the
LDDRM office with able,responsible and full time head
and staff which shall performinherent functions in the disaster
preparedness but not limited tothe following essential functions,
viz: a) DRRM officer within his
level shall implement policies,approved plans and programs ofLDRRMC in accordance with the
policies and guidelines laid down
in this Act; b) Coordinate with
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78
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
pursuant to Section 336, the localCode, in some instances, the
exercise of the authority,contradicts Section 322 of the
same Code.
Recommendations:
We recommend the followingmeasures to rectify the audit
deficiencies observed, that theCity Mayor shall:
i. Direct all department/office to
submit their budget proposalsto the local chief executive
(LCE) thru the local financingcommittee (LFC) on or before
the 15th of July of each year.
Said budget proposals shall be
prepared in accordance withthe AIP, and guidelines andspending ceilings contained in
the Budget Call and the othergeneral requirements
prescribed under Section 317of RA 7160 ( the Local Code).
ii. Re-visit the provision of
Section 336 of the Code andthe provision of City
Ordinance No. 2060, series of1992 by restating this
authority as a general
provision of the AnnualBudget of each year to ensurethat unexpended balances of
appropriations will not beincluded as source of fund for
augmentation.
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79
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iii. Department/office head shall
observe prudence in the properallocation of their respective
appropriations to ensure attainingthe objectives of their programs,
projects, activities (PPAs).
9. Gender and Development
(GAD)
The City Government failed toidentify the
programs/projects/activities in theAnnual Budgets for the
implementation of Gender andDevelopment that requires at least
five percent ( 5% ) of the totalappropriations or in the amount of
P73,889,025.78,pursuant to JointMemorandum Circular No. 2001-
1 dated December 19, 2001.
Page56
AAR
CY2011
Recommendations:
We recommend the following
suggested measures to ensure thatGAD PPAs shall be integratedinto Local Planning & Budgeting
System through formulation ofGAD Plans, Viz:
i. The City Planning Development
Coordinator shall ensure thatGAD PPAs are integrated in the
local planning process.
ii. The City Budget Officer shallallocate funds for the
implementation of the GADPlan to at least 5% of the total
appropriations earmarks in theannual and supplemental
budgets for all funds.
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80
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iii. The implementer office shall see to it
that funds allocated for the GAD
projects shall be spent solely for that purpose and submit progressaccomplishment report and year end
report to the Focal Person designated.
iv. The Focal person shall oversee andmonitor the proper implementation
of the GAD projects including
measures to improve the systemsand operations of the GAD plan
and to see to it the GAD related programs, projects and activities to
be implemented shall be inaccordance with Section 16 & 17
of LGC as spelled out in the PPGD
as mandated under Executive Order273.
v. The City Planning Development
Coordinator and/or the FocalPerson shall submit consolidated
accomplishment report to theconcerned DILG field office asrequired in the Joint Memorandum
Circular, copy furnished the City
Auditor.
vi. The present procedures of
allocating fund for GAD PPAs to
the various offices of the CityGovernment under other MOOEshall be discouraged and be
disapproved by the Sanggunian
Panlungsod.
10. Annual Procurement Plan
(APP)
The BAC Secretariat failed toconsolidate the department/office
Procurement Project ManagementPlan (PPMP) into Annual
Procurement Plan (APP) as requiredin Section 7.3, Revised IRR of RA9184 thus, procurement activities
may ends
Page61
AAR
CY
2011
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81
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
to shopping instead of public
bidding therefore, competitivenessand transparency in procurement
transactions are most likely notattained.
Recommendations:
We recommend the following
remedial measures to rectify theaudit deficiencies observed, viz:
i. The BAC Secretariat to come up
APPs for the City government based on the consolidated
individual or department/officePPMPs related to their
respective PAPs; Classify the procurement of goods whether it
is available in the PS or not; base on the APPs (consolidated
PPMPs), determine the volume,size and amount of the procurement of goods &
services, consultancy serviceand Infrastructure projects and
the time needed by thedepartment/office concerned;
prepare calendar of BACactivities for the prompt
schedule of the conduct of procurement activities and assist
in managing the procurement process.
ii. Provide copy of the APPs orconsolidated PPMPs to theOffice of the City Auditor.
iii. BAC shall observe the qualification
and threshold amount requirement for
“shopping” as a mode of procurement.
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82
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iv. The department/office shall
prepare their PPMPs basedon the PAPs and submit to the
City Budget Office forevaluation and inclusion in the
annual budget.
11. Procurement of supply
requirement through the
Procurement Service, DBM
The City Government procuredtheir office requirement for
common use supplies to privatesuppliers contradicts Section 53
(e) of the IRR-A of RA No.9184, thus the risk of incurring
additional cost of processing forthe procurement activities and
time and effort utilized isunavoidable.
Recommendations:
We recommend the followingremedial measures to ensure
specific compliance with law,rules and regulations on
government procurementtransactions emphasis on
common- use supplies and use ofPhilGEPS:
i. The BAC shall consolidate all
the supplies requirements for thecommon-use supplies of the
various offices of the Citygovernment and directly procure
same to the PS-DBM on aquarterly basis.
ii. To fast track the consolidationworks of the BAC, each
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83
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
iii. department/office head shall
provide copy of their annual procurement projects
management plan (PPMP) onSeptember of every year to the
BAC Secretariat; to determinethe common-use supplies to be
procured at PS-DBM, the timewhen these are needed by the
concerned offices and to requestfrom the City Budget Office for
the availability of fund.
iv. The City government throughthe BAC makes use of the
PhilGEPS in its procurementactivities by posting all
opportunities, notices, awardsand contracts to ensure
transparency and accountabilityand as a monitoring tool for
observers such as Civil SocietyOrganizations and COA.
12. Procurement of official uniform
of the City Government
Officials/Employees
The Committee on Uniforms
created under Executive Order ofthe City Mayor failed to exercise
the mandates tasked with themthus, the objectives to
conceptualize new designs andcolor and formulate new
guidelines in the wearing of the prescribed uniform to conform
with CSC dress code guidelineswas not achieved.
Page63
AARCY
2011
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84
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
Recommendations:
We recommend the following
remedial measures to rectify theobservations made, viz:
i. internal policy or guidelines on
future procurement of officeuniform must be established and
promulgated by a dulyconstituted committee to ensure
that the dress code as prescribein the CSC Resolution be
effectively observed andimplemented;
ii. procurement of office uniform (
cloth) and cost of labor (sewing)must be in accordance with the
IRR of RA No. 9184 and thetotal amount must not exceed
the approved appropriation forclothing/uniform allowance;
iii. in case, the costs of cloth andlabor is less than the amount of
P4,000 per employee, thedifference must be paid to the
concerns employee through the payroll system; and
iv. see to it that the cloth, design and
color must be presented to thestakeholders for comment(s) and/or approval before reaching a final
decision on the procurement of the prescribed office uniforms.
13. Unsettled Suspensions,
Disallowances and Charges
Status of
Implementation
(Full, Partial, On-
Reason for Partial/
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85
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
going, or Non-
implementation)Non-
implementation
City government compliance withaudit suspensions, disallowances
and charges made during the year
were 18.69 % or P265,435.27 outof P1,420,516.32 thereby, showsand unsettled accounts of
P1,155,081.05.
Page65
AAR
CY
2011
Recommendations:
We recommend the following
remedial measures to ensuresettlement of the audit
suspensions, disallowances andcharges, the head of the agency
shall:
i) direct the responsible persons tocomply the requirements stated
in the audit suspensions andrestitute/refund the audit
disallowances and charges;
ii) ensure that all employees whoare retiring or transferring to
other agencies shall first settle
the disallowances and chargesfor which they are liable.
For the Year Ended December 31, 2010 (prior year for audit recommendations not
fully implemented)
Financial and Compliance Audit
14. Cash in Bank-Local Currency
Cash Account
Confirmation of cash accounts balances per books with the banks
showed disagreement between thetwo independent records of
P44,581,089.40, the agency
Page31,
AAR
CY
2010
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
Status of
Implementation
(Full, Partial, On-
Reason for Partial/
Non-
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86
ACTION going, or Non-
implementation)implementation
books has a balance ofP350,878,203.43, while the bank
accounts shows aggregate total of
P395,459,292.83. Six (6) bankaccounts were verified which haveunadjusted reconciling items of
P7,996,044.13 while 14 bankaccounts has no bank reconciliation
statement (BRS) contrary to
Section 74, PD 1445, thus castdoubts to the validity, accuracy
and existence of the cashaccounts.
Recommendations:
1. Record the adjustments noted
in the bank reconciliationstatements made.
Not
implemented
2. Exhaust all possible means totrace and reconcile the
remaining differences found between the books and banks
balances.
SP Resolution No. 11-418-A
resolutiondirecting the
Head, City
Accountant’sOffice to prepare a Bank
ReconciliationStatement
Not
implem
ented
3. Prepare monthly BankReconciliation Statements
regularly and ensure the timelyrecording of adjustments and/or
corrections for fair presentation ofthe cash accounts in the financial
statements.
Notimplem
ented
No proper
accounting
personnel being
assigned to do
the Bank
Reconciliation
Statement.
4. Assign one accounting personnel
to assist the Trust Fund recordkeeper in the preparation of the
BRS.
Not
implem
ented
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
Status of
Implementation
(Full, Partial, On-
going, or Non-
Reason for Partial/
Non-
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87
ACTION implementation) implementation
15. Due from Officers and
Employees
Cash advances includes those
unliquidated domestic travels andtime bound undertakings in the
amount of P9,338,999.09 or 97.51% of the aggregate amount of P
9,577,909.72, contrary to COACircular No. 97-002 and pose
problems on the certainty ofsettlements of the accounts as
some of these officers andemployees have retired and
resigned or transferred to other
offices. These also understated therelated expenses account andoverstated the reported income
accounts and trust liability.
Page
33,
AAR
CY
2010
Recommendation:
The City Accountant should be
guided with COA Circular No.
96-004, implementing Section
16 of Executive Order No. 248
and COA Circular No. 97-002,
amended rules and regulations
on the granting, utilization and
liquidation of cash advances
and Section 89 of PD. 1445 by
adopting strictly the following:
Partially
Imple-
mented
Compliance with
the rules on
granting,
utilization and
liquidation of cash
advances cannot
be fully
implemented due
to some personal
request from the
concern
employees with
unliquidated cash
advance
Only permanently appointedofficials shall be designated asdisbursing officers. Electedofficials may be granted cashadvance only for their official
traveling expenses.
PartiallyImple-
mented
Elected officialwas allowed to
draw cash
advance.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
Status of
Implementation
(Full, Partial, On-
going, or Non-
Reason for Partial/
Non-
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88
ACTION implementation) implementation
For foreign/local travels, to send within ten (10) before the
expiration of the 30 or 60 days
period specified under Section16, of EO 248, a written reminderunder signature of the head of the
agency or his duly authorizedrepresentative, enjoining the
official or employee concerned toliquidate his travel cash advance.
Delete the name of the official oremployee from the subsequent
payrolls until such time that thetravel cash advance has been fully
liquidated, if the official oremployee concerned fails to
liquidate the cash advance withinthe prescribed period.
Partially
Imple-
mented
Liquidation of
local travels
exceeded the 30days limit.
For petty cash fund (PCF) andtime bound undertaking (special
cash advance) to enjoin theofficial and employees to liquidate
within 20 days after the end of theyear or as soon as the purpose for
which it was given has beenserved. When a cash advance is
no longer needed or has not beenused for a period of two (2)
months, it must be returned orrefunded immediately to the
collecting officer. Official andemployee drawing cash advance
under this category shall berequired to post fidelity bond, if
the amount to be given is P 5,000
and above. Only duly appointed ordesignated disbursing officer may perform disbursing functions.
Partially
Imple-
mented
PCF are not
maintained under
the imprest
system.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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89
Submit list of officials and
employees who have alreadyseparated from the service and/or
have transferred to other offices
and the total amount shall bedisclosed in the financialstatement.
Not
Imple-
mented
For effective monitoring of
liquidation, within ten (10) days
after receipt of the report andsupporting documents from the
accountable officer, verify thereport, prepare the JEV and
submit the same with all the
vouchers/payrolls and supportingdocuments to the Auditor.
Not
Imple-
mented
16. Due from LGUs
Additional fund transfers out of
the 20% Development Fund were
made to various barangays
without first requiring full
liquidation of previous releases,
thus, accumulating the balance ofDue from LGUs account to
P51,325,833.46 as of December
31, 2010; non-reconciliation of
the barangay’s records with the
accounting’s general ledger
accounts showed a difference of
P37,005,395.89, contrary to
Memorandum of Agreement, thus
completion of various
infrastructure projects
implemented at the barangay level
are doubtful
Page
38,
AA
R
CY
2010
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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90
Recommendations:
1. Direct the City Accountant to holdin abeyance the processing of
additional fund releases to barangays until such the
liquidations of previous yearsfund transfers have been
submitted in pursuant to the provisions of MOA.
Partially
Imple-
mented
Acting Head,
Barangay
Accounting
Section is nowrequiring each
barangay to
submit their
liquidation on
previous releases
before subsequent
or succeeding
releases of fund.
2. The City Accountant should
issue demand letters for theimmediate liquidation of fund
transfer that were due anddemandable pertaining to prior
year’s releases.
Not
Imple-
mented
No demand letter
is issued.
3. The City Accountant’srepresentative and the barangay
record keepers should sit togetherquarterly for the reconciliation of
their accounts to identify thereconciling items and to record
immediately the adjustments.
Not
Imple-
mented
Nothing heard
on the meeting
between the
accounting
representativesand Barangay
record keeper.
17. Due from NGOs/POs
Funds transferred to NGOs/POs
amounting to P8,874,258.55
remains unliquidated as of
December 31, 2010, of which
P3,334,168.33 is already more
than 2 years, contrary to Section5.4 of COA Circular No. 2007-001,
thus, casting doubt on the accuracy
and validity of the account.
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
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91
ACTION implementation
Recommendation:
1. Direct the City Accountant to
demand immediate liquidation offund transferred to NGOs/POs.
Render report for those who cannot submit liquidation report due
to their whereabouts is nowhere tofind and submit to the City Mayor
and the appropriate committee inthe Sangguniang Panglunsod for
adoption of appropriate measuresto protect the interest of the city
government.
Not
Imple-
mented
No demand letter
being sent to the
concern
NGOs/PO.
2. Direct the City Accountant’s
representative to verify theaccounts of NSO and Brimaconstruction, if this an act of
human error reclassify to theappropriate account.
Not
Imple-
mented
We doubt
whether they
have verified the
accounts.
3. To safeguard fund transferred to
NGOs/POs, the accountant andthe focal person in the
implementation of the projectshould conduct pre-briefing
seminar on the reporting of theutilization of the fund and in the
implementation project beforefund releases.
Not
Imple-
mented
No pre-briefing
meeting
conducted prior
to the release of
fund.
18. Due from Other Funds/Due to
other Funds
Unreconciled reciprocal accounts of
Due from Other Funds and Due to
Other Funds maintained by the General
Fund, Special Education Fund and
Trust Fund, resulting to a difference of
P4,190,042.14, thus rendering the
accounts doubtful.
Page
41,
AAR
CY
2010
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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92
Recommendation:
The City Accountant’s
representative should reconcile
the reciprocal accounts and effectadjustment in the respective books
of accounts for fair presentation in
the financial statements.
Not
Imple-
mented
No reconciliation
is done.
19. Accumulated Depreciation/
Depreciation Expense
The carrying amount of the
property, plant and equipment
(PPE) are overstated because thedepreciation of the assets were not
recorded for almost two (2) years,
runs counter to Section 4 (o) of
New Government Accounting
System, Volume I, resulted into
understatement of expenses and
the related contra-asset accounts.
Page
42,
AAR
CY
2010
Recommendation:
The City Accountant should
immediately compute for thedepreciation of the PPE
accounts for the past two yearsand to record the depreciation
expenses for the current year.
Partially
imple-
mented
20. Construction in Progress
Construction in progress for
completed projects in calendaryear 2010 in the total amount ofP24,911,356.32 were still not
recorded as agency assets and/or
Page
43,
AA
R
CY
2010
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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93
as public infrastructure projectscontrary to the provisions of
Section 50, Volume I of theManual on the New Government
Accounting System, thus,understating the appropriate PPE
accounts and expenses for thedepreciation that could have
already been allocated.
Recommendations:
1.The City Accountant’srepresentative to record the
completed projects either asagency assets and/or public
infrastructure projects, the lattershould be transferred to the
Registry of PublicInfrastructure.
Partially
Imple-
mented
21 Loans Payable – Long-Term,
Domestic
Long-Term-Loans payable
(domestic) in the amount of
P262,603,167.14 of which
P1,413,375.00 is due and payable
within twelve months after
balance sheet date were not
reclassified as current liabilities
inconsistent with the Philippine
Accounting Standard (PAS) No. 1.
Page
44,
AAR
CY
2010
Recommendation:
The City Accountant to reclassify
current liability from non- current
liability in conformity with PAS No.
1 to ensure that both accounts are
fairly present in the financial
statements.
Not
imple-
mented
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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94
22. Property, Plant and Equipment
Accounts
Incomplete physical inventorytaking and reporting to establish
the validity, correctness andexistence of Property, Plant and
Equipment accounts totalingP1.973,668,373.22 as of
December 31, 2008 is contraryto provisions of Section 124,
NGAS, Volume I
Page
24,
AAR
CY
2008
Recommendations:
1. Henceforth, ensure the religious
submission of Report on thePhysical Count of Property, Plantand Equipment (RPCPPE) to theAuditor concerned not later than
January 31 of each year to serveas a basis in checking their actual
balance and existence especiallyat year end, as well as, in
reconciling GSO/property andaccounting books and records.
Not
Imple-mented
No Inventory
Committee wascreated for CY
2010.
23. Appropriation for the Transferof Ownership of 163
Certificate of Titles and the
Titling
City of Iligan failed to appropriate
in the annual budget estimatedcosts for the transfer of ownershipof 163 Certificate of Titles and the
Titling of 32 parcels of untitledlands/lots acquired through
purchase in favor of the city,thereby placing the property still
in the name of former owners.
Page
36,
AA
R
CY
2008
Partially
Imple-
mented
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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95
Recommendation:
Provide sufficient appropriation
for the transfer of title ofownership of titled properties
acquired through purchase, andthe titling of untitled land
acquired in favor of the CityGovernment.
24. Gender and Development
The City Government failed to
formulate Gender andDevelopment Plans that require a
minimum five percent (5%)
budgetary allocation to beauthorized under the city annualand supplementary budgets
appropriated for CY 2008,contrary to DBM and NEDA
Joint Circular No. 2001-1 datedAugust 15, 2001.
Page
28,
AAR
CY
2008
Recommendations:
1. Formulate the required GAD
Plans within the context ofthe city’s overall plans and
programs. The GAD planshould contain
Programs/Projects/Activities(PPA) that will address
existing and emerging genderissues.
Not
Imple-mented
2. Provide appropriation of notless than five percent (5%) of
the total 2009 annual andsupplemental budgets to
GAD related programs/projects/activities,
The SP has
appropriated
P200,000 forthe titling of
land acquired
Partially
Imple-
mented
OBSERVATIONS AND RECOMMENDATIONS REF. MANAGEMENT
ACTION
Status of
Implementation
(Full, Partial, On-
going, or Non-
implementation)
Reason for Partial/
Non-
implementation
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as required in Section 6.3 of
DBM and NEDA Circular No. 2001-01.
by the City
Government.
For CY 2011,
only P290,000
was
appropriated
for GAD out of
its Annual
Budget of P1.2
Billion.
City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
ASSETS
CURRENT ASSETS
CASH
Cash on Hand
Cash in Vault -
Cash-Disbursing Officers 14,309,994.28 9,184,598.28 1,461,119.62 3,664,276.38
Petty Cash Fund 130,371.05 130,371.05
Payroll Fund -
Cash in Banks-Local Currency -
Cash in Bank-Local Currency, Current Account 1,184,066,769.89 761,200,063.49 21,737,027.21401,129,679.19
Cash in Bank-Local Currency, Savings Account -Cash in Bank-Local Currency, Time Deposits 226,635,350.39 187,743,971.39 23,022,967.86 15,868,411.14
Cash in Banks-Foreign Currency -
Cash in Bank--Foreign Currency, Current Account -
Cash in Bank-Foreign Currency, Savings Account -
Cash in Bank-Foreign Currency, Time Deposits -
Total Cash 1,425,142,485.61 958,259,004.21 46,221,114.69 420,662,366.71
RECEIVABLES
Receivables Accounts
Accounts Receivable -
Notes Receivable -
Due from Officers and Employees 7,539,921.72 6,911,814.24 268,901.39 359,206.09
Loans Receivables - GOCCs -
Loans Receivables - Others 9,498,067.77 7,918,226.61 1,579,841.16Loans Receivables - LGUs -
Real Property Tax Receivable 407,679,602.52 407,679,602.52
Special Education Tax Receivable 350,144,763.22 350,144,763.22
Interests Receivable -
Inter-agency Receivables -
Due from NGAs 6,397,110.19 6,397,110.19
Due from GOCCs 1,285,000.00 1,285,000.00
Due from LGUs 81,105,870.66 81,105,870.66
Due from NGOs/Pos 7,290,263.78 5,190,263.78 2,100,000.00
Intra-agency Receivables -
Due from Other Funds 1,535,742.60 1,456,156.00 79,586.60
Other Receivables -
Receivables-Disallowances/Charges 4,273,491.52 4,231,728.34 41,763.18
Advances to Officers and Employees -
Other Receivables 140,183.28 140,081.02 1.26 101.00
Total Receivables 876,890,017.26 522,315,853.36 352,555,429.05 2,018,734.85
INVENTORIES
Materials
Raw Materials Inventory -
Work-in Process Inventory -
Finished Goods Inventory -
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Merchandise Inventory -
Supplies -
Office Supplies Inventory 244,644.50 244,644.50
Accountable Forms Inventory 748,150.67 748,150.67
Animal/Zoological Supplies Inventory -
Food Supplies Inventory -
Drugs and Medicines Inventory 791,211.90 791,211.90Medical, Dental and Laboratory Supplies
Inventory 636,965.00636,965.00
Gasoline, Oil and Lubricants Inventory -
Agricultural Supplies Inventory -Textbooks and Instructional Materials
Inventory -Military and Police Supplies Inventory -
Other Supplies Inventory 293,148.00 293,148.00Confiscated/Abandoned/Seized Goods
Inventory -
Spare Parts Inventory 2,066,500.00 2,066,500.00
Construction Materials Inventory -
Agricultural, Fishery and Forestry Products -
Livestock Inventory -
Crops and Fruits Inventory -Other Agricultural, Fishery and Forestry
Products Inventory -
Total Inventories 4,780,620.07 4,780,620.07 - -
PREPAYMENTSPrepaid Rent -
Prepaid Insurance 1,146,581.79 1,146,581.79
Prepaid Interest -
Deposit on Letters of Credit -
Advances to Contractors 32,040,029.35 31,730,517.71 103,401.70 206,109.94
Deferred Charges -
Other Prepaid Expenses -
Total Prepayments 33,186,611.14 32,877,099.50 103,401.70 206,109.94
OTHER CURENT ASSETS
Guaranty Deposits 80,000.00 80,000.00
Other Current Assets -
Total Other Current Assets 80,000.00 80,000.00 - -
Total Current Assets 2,340,079,734.08 1,518,312,577.14 398,879,945.44 422,887,211.50
INVESTMENTS
Investment in Treasury Bills -
Investment in Stocks -
Investment in Bonds -
Other Investment and Marketable Securities 6,000,000.00 6,000,000.00
Sinking Fund -
Total Investments 6,000,000.00 6,000,000.00 - -
PROPERTY, PLANT & EQUIPMENT (Net of
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Depreciation)
LAND AND LAND IMPROVEMENTS
Land 341,616,892.33 329,061,409.28 8,946,883.05 3,608,600.00
Land Improvement 6,262,833.51 5,907,979.61 354,853.90
Electrification, Power and Energy Structures (1,311,872.85) (1,759,293.50) 447,420.65
Total Land and Land Improvements 346,567,852.99 333,210,095.39 9,749,157.60 3,608,600.00
BUILDINGS
Office Building 265,734,504.67 172,006,662.12 93,727,842.55
School Building 31,970,943.98 26,099,335.15 5,871,608.83
Hospitals and Health Center 8,848,689.35 6,215,265.34 2,633,424.01
Markets and Slaughterhouses 108,570,821.80 108,570,821.80
Other Structures 72,502,722.09 57,632,036.39 113,450.71 14,757,234.99
Total Buildings 487,627,681.89 370,524,120.80 99,712,902.09 17,390,659.00LEASEHOLD IMPROVEMENTS
Leasehold Improvements, Land 2,486,484.71 2,486,484.71
Leasehold Improvements, Buildings -
Other Leasehold Improvements -
Total Leasehold Improvements 2,486,484.71 2,486,484.71 - -
OFFICE EQUIPMENT, FURNITURE &FIXTURES
Office Equipment 33,901,903.64 30,868,076.94 1,314,580.85 1,719,245.85
Furniture and Fixtures 29,335,437.72 20,485,776.68 8,563,435.07 286,225.97
IT Equipment and Software 45,396,283.83 44,531,361.76 269,340.64 595,581.43
Library Books 14,069,043.32 2,820,586.85 10,863,015.68 385,440.79
Total Office Equipment, Furniture and
Fixture 122,702,668.51 98,705,802.23 21,010,372.24 2,986,494.04MACHINIRIES & EQUIPMENTS
Machineries 329,085.39 139,876.55 189,208.84
Agricultural, Fishery and Forestry Equipment 500,502.13 467,502.13 33,000.00
Communication Equipment 6,602,731.52 6,576,874.23 25,857.29
Construction and Heavy Equipment 107,138,544.62 107,138,544.62
Hospital Equipment 5,470,712.61 5,416,950.11 53,762.50
Firefighting Equipemnt and Accessories 2,835,164.61 2,824,846.76 10,317.85
Medical, Dental and Laboratory Equipt. 6,719,085.27 6,655,060.27 64,025.00
Military and Police Equipment 1,116,151.94 1,116,151.94
Sports Equipment 1,269,403.94 1,033,761.44 235,642.50
Technical and Scientific Equipment 7,083,852.55 6,783,554.43 300,298.12
Other Machineries and Equipment 1,092,429.70 1,092,429.70Total Machineries and Equipment 140,157,664.28 139,245,552.18 761,324.60 150,787.50
TRANSPORTATION EQUIPMENT
Motor Vehicles 82,043,391.24 76,190,974.79 1,104,519.97 4,747,896.48
Watercrafts 127,881.25 127,881.25
Other Transportation Equipment 307,400.00 307,400.00
Total Transportation Equipment 82,478,672.49 76,626,256.04 1,104,519.97 4,747,896.48
OTHER PROPERTY, PLANT & EQUIPMENT
Other Property, Plant and Equipment 263,912,448.82 263,269,100.49 341,000.23 302,348.10
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Total Other Property, Plant and Equipt. 263,912,448.82 263,269,100.49 341,000.23 302,348.10
PUBLIC INFRASTRUCTURE
Roads, Highways and Bridges -
Parks, Plazas and Monuments 2,427,223.00 2,427,223.00
Ports, Lighthouse and Harbors - Artesians Wells, Reservoirs, PumpingStations & Conduits 447,210.08 62,874.97 384,335.11
Irrigations, Canals and Laterals 42,901,095.17 42,901,095.17
Flood Controls -Waterways, Aqueducts, Seawalls, River
Walls and Others -
Other Public Infrastructures 124,488,573.45 124,488,393.45 180.00
Total Public Infrastructures 170,264,101.70 169,879,586.59 384,515.11 -REFORESTRATION PROJECTS
Reforestration-Upland 49,500.00 49,500.00
Reforestration-Marshland/Swampland -
Total Reforestrat ion Projects 49,500.00 49,500.00 - -
CONSTRUCTION IN PROGRESS
Construction in Progress-Agency Assets 305,312,183.53 252,893,064.67 34,703,978.07 17,715,140.79
Public infrastructure/Reforestration Projects -Construction in Progress - Roads, Highways
and Bridges 101,167,819.09 97,705,700.09 3,462,119.00Construction in Progress - Plazas, Parks
and Monuments 2,058,473.40 2,058,473.40
Construction in Progress - Ports, Lighthouseand Harbors -
Construction in Progress - Artesian Wells,Reservoirs 294,731,641.98 294,724,506.98 7,135.00
Construction in Progress - Irrigation, Canalsand Laterals 21,440,199.59 21,440,199.59
Construction in Progress - Flood Control 3,760,708.02 3,760,708.02Construction in Progress - Waterways,
Aqueducts, Seawalls 4,849,245.13 4,849,245.13Construction in Progress - Other Public
Infrastructures 70,333,375.31 67,890,278.41 236,686.90 2,206,410.00Construction in Progress - Reforestation-
Upland -
Construction in Progress - Reforestation-Marshland 7,197.08 7,197.08
Total Construction in Progress 803,660,843.13 745,329,373.37 34,940,664.97 23,390,804.79
Total Property, Plant and Equipment 2,419,907,918.52 2,199,325,871.80 168,004,456.81 52,577,589.91
OTHER ASSETS
Work/Other Animals 1,555,924.00 1,322,924.00 233,000.00
Breeding Stocks 28,217,431.28 28,217,431.28
Arts, Archeological Speciment and Other Exhibits -
Items in Transit -
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Other Assets 2,548,865.21 353,092.00 2,195,773.21
Total Other Assets 32,322,220.49 29,893,447.28 2,195,773.21 233,000.00
TOTAL ASSET 4,798,309,873.09 3,753,531,896.22 569,080,175.46 475,697,801.41
LIABILITIES
CURRENT LIABILITIES
Payable Accounts
Accounts Payable 73,181,067.40 69,424,718.53 3,756,348.87
Notes Payable -
Due to Officers and Employees 9,621,256.25 9,618,487.51 2,768.74
Interest Payable -Inter-agency Payables -
Due to BIR 23,122,794.68 18,587,152.15 1,283,568.48 3,252,074.05
Due to GSIS (960,703.39) (1,232,945.81) 272,242.42
Due to PAG-IBIG 2,704,477.27 2,581,556.12 122,921.15
Due to PHILHEALTH 3,226,761.89 1,737,215.02 1,489,546.87
Due to Other NGAs 62,907,965.74 10,047,949.43 52,860,016.31
Due to Other GOCCs 16,931,935.93 189,810.00 16,742,125.93
Due to LGUs 1,882,482.22 166,496.29 1,715,985.93
Intra-Agency Payables -
Due to Other Funds 33,277,325.42 33,053,722.00 207,458.51 16,144.91
Other Liabiltiy Accounts -
Guaranty Deposits Payable 18,086,334.86 16,534,859.73 14,579.87 636,895.26
Performance/Bidders/Bail Bonds Payable 67,585,560.54 666,575.65 66,918,984.89Tax Refunds Payable -
Other Payables 290,440,959.70 14,439,920.17 32,943.84 275,768,095.69
Total Current Liabilities 602,008,218.51 175,815,516.79 8,282,378.75 417,910,322.97
LONG TERM LIABILITIES
Mortgage/Bonds/Loans Payable
Mortgage Payable -
Bonds Payable-Domestic -
Bonds Payable-Foreign -
Loans Payable- Domestic 677,866,248.46 677,866,248.46
Loans Payable - Foreign -
Other Long-Term Liabilities -
Total Long Term Liabilities 677,866,248.46 677,866,248.46 - -TOTAL LIABILITIES 1,279,874,466.97 853,681,765.25 8,282,378.75 417,910,322.97
DEFERRED CREDITS
Deferred Real Property Tax Income 415,919,177.02 415,919,177.02
Deferred Special Education Tax Income 350,144,333.12 350,144,333.12
Other Deferred Credits 546,598.05 441,584.05 7,614.00 97,400.00
Total Deferred Credits 766,610,108.19 416,360,761.07 350,151,947.12 97,400.00
EQUITY
Government Equity-Beg. 2,625,256,819.29 2,366,476,445.23 200,982,074.59 57,798,299.47
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City Government of Iligan Annex ABalance Sheet, by Unit
As of December 31, 2012 Annex A
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Adjustments to Beg. Bal. -
Adjusted Beg. Bal. 2,625,256,819.29 2,366,476,445.23 00,982,074.59 57,798,299.47
Add: Retained Operating Surplus:
Current Operations 138,755,033.23 129,671,975.43 9,083,057.80
Prior year's Adjustment 580,717.20 580,717.20
Less: Transfer to Registry -
Public Infrastructures -
Reforestation Projects -
Prior year's Adjustment 12,767,271.79 12,659,050.76 108,221.03
Government Equity, December 31, 2010 2,751,825,297.93 2,483,489,369.90 210,645,849.59 57,690,078.44
TOTAL LIABILITIES AND EQUITY 4,798,309,873.09 3,753,531,896.22 569,080,175.46 475,697,801.41
CHECKING:
asset vs. liability & equty - - - -
Income by Fund vs. current operation - - - -
total cash vs. cash balance (cashflow)) - -
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Garbage Fees -
Inspection Fees 6,319,714.44 6,319,714.44
Library Fees -
Medical, Dental and Laboratory Fees -
Processing Fees -
Seminar Fees -
Toll and Terminal Fees -
Transcript of Records Fees -
Other Service Income 6,065,485.50 6,065,485.50
Fines and Penalties - Service Income 55.00 55.00
Total Service Income 16,108,122.04 16,108,122.04 - -
Business Income
Hospital Fees 23,225,797.81 23,225,797.81
Income from Canteen Operations -
Income from Cemetery Operations 1,368,824.00 1,368,824.00
Income from Communication Facilities -
Income from Dormitory Operations -
Landing and Parking Fees -
Income from Markets 12,157,260.03 12,157,260.03
Income from Slaughterhouse 1,723,840.68 1,723,840.68
Income from Transportation System 11,312,284.14 11,312,284.14
Income from Waterworks System 48,460,172.44 48,460,172.44
Printing and Publication Income -
Rent Income 88,000.00 88,000.00
Sales Revenue 25,067.00 25,067.00
Cost of Good Sold -
Net Sales Revenue 25,067.00 25,067.00 - -
Tuition Fees
Other Business Income -
Fines and Penalties - Business Income 388,232.54 388,232.54
Total Business Income 98,749,478.64 98,749,478.64 - -
Other IncomeDividend Income -
Income from Grants and Donations -
Insurance Income 563,850.00 563,850.00
Interest Income 5,433,907.11 4,769,948.02 663,959.09Sale of Confiscated/Abandoned/Seized
Goods and Properties -
Share from Economic-Zones 3,744,896.99 3,744,896.99
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Share from Expanded Value Added Tax -
Share from National Wealth 21,058,502.90 21,058,502.90
Share from PAGCOR/PCSO 347,109.85 347,109.85
Share from Tobacco Excise Tax -
Miscellaneous Income 212,850.00 212,850.00
Other Fines and Penalties 196,411.23196,411.23
Total Other Income 31,557,528.08 30,893,568.99 663,959.09 -
TOTAL OPERATING INCOME 1,124,252,002.84 1,057,368,650.81 66,883,352.03 -
EXPENSES
PERSONAL SERVICES
Salaries and Wages
Salaries and Wages - Regular 271,360,638.90 241,778,905.78 29,581,733.12
Salaries and Wages - Military/Uni formed -
Salaries and Wages - Part-time -
Salaries and Wages - Substitute -
Salaries and Wages - Casual 88,091,840.71 88,042,963.15 48,877.56
Salaries and Wages - Contractual 72,321.16 72,321.16
Salaries and Wages - Emergency -
Other CompensationPersonnel Economic Relief Allowance
(PERA) 30,737,273.26 26,897,987.90 3,839,285.36 Additional Compensation (ADCOM) -
Representation Allowance (RA) 3,379,489.29 3,379,489.29
Transportation Allowance (TA) 2,830,701.54 2,830,701.54
Clothing/Uniform Allowance 6,360,570.68 5,558,970.68 801,600.00
Subsistence, Laundry and Quarter Allowance 3,819,884.28 3,724,907.12 94,977.16
Productivity Incentive Allowance 18,681,493.43 18,365,493.43 316,000.00
Other Bonuses and Allowances 60,000.00 60,000.00
Honoraria 3,392,676.81 2,581,876.81 810,800.00
Hazard Pay 39,497.08 39,497.08
Longevity Pay 1,235,000.00 950,000.00 285,000.00
Overtime and Night Pay 2,018,822.45 2,018,822.45
Cash Gift 6,871,036.38 6,068,536.38 802,500.00
Year End Bonus 22,187,052.21 19,710,969.71 2,476,082.50
Personnel Benefits Contributions -
Life and Retirement Insurance Contributions 32,986,037.86 29,425,687.41 3,560,350.45
PAG-IBIG Contributions 1,618,761.84 1,426,261.84 192,500.00
PHILHEALTH Contributions 3,102,035.97 2,750,073.47 351,962.50
ECC Contributions 1,556,806.20 1,364,572.36 192,233.84
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Other Personnel Benefits
Pension Benefits-Civilian -
Retirement Benefits-Civilian 1,625,298.00 1,625,298.00
Terminal Leave Benefits 8,150,537.13 7,619,227.05 531,310.08
Health Workers Benefits 6,000.00 6,000.00
Other Personnel Benefits 11,529,924.92 4,885,911.10 6,644,013.82
Total Personal Services 521,713,700.10 471,184,473.71 50,529,226.39 -
Maintenance and Other Operating Expenses
Travelling Expenses
Travelling Expenses - Local 7,499,258.69 7,480,634.37 18,624.32
Travelling Expenses - Foreign -
Training and Scholarship Expenses
Training Expenses 708,908.39 708,908.39
Scholarship Expenses 2,284,800.00 2,284,800.00
Supplies and Material Expenses
Office Supplies Expense 7,910,640.17 7,743,778.28 166,861.89
Accountable Forms Expenses 1,742,033.00 1,742,033.00
Animal/Zoological Supplies Expenses 118,130.00 118,130.00
Food Supplies Expenses 4,012,589.14 4,012,589.14
Drugs and Medicines Expenses 9,503,881.65 9,503,881.65Medical, Dental and Laboratory Supplies
Expenses 6,771,117.25 6,771,117.25Gasoline, Oil and Lubricants Expenses 30,907,084.13 30,744,181.91 162,902.22
Agricultural Supplies Expenses 184,782.00 184,782.00
Textbooks and Instructional Materials Exp. -
Military and Police Supplies Expenses -
Other Supplies Expenses 34,251,296.79 34,251,296.79
Utility Expenses
Water Expenses -
Electricity Expenses 49,216,891.06 48,154,388.79 1,062,502.27
Cooking Gas Expenses -
Communication Expenses
Postage and Deliveries 73,151.84 73,151.84
Telephone Expenses- Landline 1,439,547.66 1,439,547.66
Telephone Expenses- Mobile 1,843,698.39 1,843,698.39
Internet Expenses 774,121.77 774,121.77
Cable, Satellite, Telegraph and Radio Exp. -Membership Dues and Contributions toOrganizations 204,300.00 204,300.00
Awards and Indeminities Expenses -
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Advertising Expenses 1,518,420.40 1,518,420.40
Printing and Binding Expenses 56,000.00 56,000.00
Rent Expenses 6,458,487.80 6,458,487.80
Representation Expenses 1,284,371.05 1,284,371.05
Transportation and Delivery Expenses 1,000.00 1,000.00
Storage Fees -
Subscription Expenses 67,266.00 67,266.00
Survey Expenses 346,081.07 346,081.07
Rewards and Other Claims Expenses -
Professional Services
Legal Services -
Auditing Services -
Consultancy Services 1,809,505.58 1,809,505.58
Environment/Sanitary Services -
General Services 23,333,575.19 23,333,575.19
Janitorial Services 14,716,403.06 14,716,403.06
Security Services 1,867,931.10 1,867,931.10
Other Professional Expenses -
Repairs and Maintenance
Land and ImprovementRepairs and Maintenance-Land
Improvements -Repairs and Maintenance-Electrification,
Power & Energy Structures 2,902,385.72 2,902,385.72
Buildings
Repairs and Maintenance-Office Building 1,398,789.11 1,398,789.11
Repairs and Maintenance-School Bldgs. 898,834.00 898,834.00Repairs and Maintenance-Hospitals and
Health Centers -Repairs and Maintenance-Market and
Slaughterhouse 364,059.00 364,059.00
Repairs and Maintenance-Other Structure 180,776.50 180,776.50
Leasehold Improvements
Repairs and Maintenance-LeaseholdImprovements, Land -
Repairs and Maintenance-LeaseholdImprovements, Building -
Repairs and Maintenance-Other LeaseholdImprovements -
Office Equipment, Furniture and Fixtures
Repairs and Maintenance-Office Equip. 151,168.00 151,168.00
Repairs and Maintenance-Furniture and -
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Fixture
Repairs and Maintenance-IT Equip. andSoftware 990.00 990.00
Machineries and Equipment
Repairs and Maintenance-Machineries -Repairs and Maintenance-Agricultural,
Fishery & Forestry -Repairs and Maintenance-Communication
Equipment -Repairs and Maintenance-Construction and
Heavy Equipment 420,389.00 420,389.00Repairs and Maintenance-Firefighting
Equipment & Accessories -Repairs and Maintenance-Hospital
Equipment -Repairs and Maintenance-Medical, Dental
and Laboratory -
Repairs and Maintenance-Military and PoliceEquipment -
Repairs and Maintenance-Sports Equip. -Repairs and Maintenance-Technical &
Scientific Equipment -Repairs and Maintenance-Other Machineries
and Equipment -
TransportationEquipmentRepairs and Maintenance-Motor Vehicles 13,873,166.34 13,873,166.34
Repairs and Maintenance-Watercrafts 1,610.00 1,610.00Repairs and Maintenance-Other
Transportation Equipment -
Other Property, Plant and EquipmentRepairs and Maintenance-Other Property,
Plant & Equipment 85,000.00 85,000.00
Public Infrastructures
Repairs and Maintenance-Roads, Highways and Bridges 1,816,926.28 1,816,926.28
Repairs and Maintenance-Plazas Parks and Monuments 293,484.00 293,484.00
Repairs and Maintenance-Ports, Lighthouse and Harbors -
Repairs and Maintenance-Artesian Wells, Reservoirs,Pumping 109,070.00 109,070.00
Repairs and Maintenance-Irrigation Canals and Laterals -
Repairs and Maintenance-Flood Control -Repairs and Maintenance-Waterways,
Aqueducts, Seawalls -Repairs and Maintenance-Other Public
Insfrastructures -
Reforestration Projects
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Repairs and Maintenance-ReforestrationUpland -
Repairs and Maintenance-Marshland/Swampland -Confidential, Intelligence, Extraordinary &Miscellaneous Expense
Confidential Expenses 9,000,000.00 9,000,000.00
Intelligence Expense 9,000,000.00 9,000,000.00
Extraordinary Expenses 1,144,002.00 1,144,002.00
Miscellaneous Expenses -
Taxes, Insurance Premium and Other Fees
Taxes, Duties and Licenses 915,222.13 915,222.13Fidelity Bond Premium 156,066.75 156,066.75
Insurance Expenses 9,944,539.07 9,944,539.07
Non-Cash Expenses
Depreciation
Land Improvements
Depreciation-Land Improvements -Depreciation-Electrification, Power and
Energy Structures 1,769,474.34 1,769,474.34
Building
Depreciation-Office Buildings 2,214,722.04 2,214,722.04
Depreciation-School Building 31,968.05 31,968.05Depreciation-Hospitals and Health Centers 47,063.32 47,063.32
Depreciation-Markets and Slaughterhouses 3,871,869.38 3,871,869.38
Depreciation-Other Structures 2,048,445.46 2,047,976.20 469.26
Leasehold Improvements
Depreciation-Leasehold Improvements, Land -
Depreciation-Leasehold Improvements, Buildings -
Depreciation-Other Leasehold Improvements -
Office Equipment, Furniture and Fixtures
Depreciation-Office Equipment 1,017,969.05 1,011,604.10 6,364.95
Depreciation-Furniture and Fixtures 573,961.26 564,296.91 9,664.35
Depreciation-IT Equipment 4,271,477.12 4,267,666.74 3,810.38Depreciation-Library Books 209,227.70 27,973.44 181,254.26
Machineries
Depreciation-Machineries -Depreciation-Agricultural, Fishery and
Forestry Equipment 127,780.56 127,780.56
Depreciation-Communication Equipment 340,445.55 340,445.55Depreciation-Construction and Heavy
Equipment 1,182,708.32 1,182,708.32
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Depreciation-Firefighting Equip. and Accessories 125,397.26 125,397.26
Depreciation-Hospital Equipment 687,363.03 687,363.03
Depreciation-Medical, Dental and Lab. Equipt. 471,282.18 471,282.18
Depreciation-Military and Police Equipment 48,606.00 48,606.00
Depreciation-Sports Equipment 62,431.67 62,431.67Depreciation-Technical and Scientific
Equipment 54,864.00 54,864.00
Depreciation-Other Machineries and Equip. 9,213.88 9,213.88
Transportation and Equipment
Depreciation-Motor Vehicles 4,323,337.51 4,321,195.72 2,141.79
Depreciation-Watercrafts 17,775.00 17,775.00Depreciation-Other Transportation
Equipment 55,800.00 55,800.00
Other Property, Plant and Equipment
Depreciation-Other Property, Plant and Equip. 960,620.16 960,620.16
Other Maintenance and Operating Expenses
Loss of Assets -
Loss on Guaranty -
Other Maintenance and Operating Expenses 106,857,602.16 102,378,932.06 4,478,670.10Total Maintenance and Other OperatingExpenses 394,943,156.08 387,919,088.24 7,024,067.84 -
TOTAL OPERATING EXPENSES 916,656,856.18 859,103,561.95 57,553,294.23 -
INCOME FROM OPERATIONS 207,595,146.66 198,265,088.86 9,330,057.80 -
FINANCIAL EXPENSES
Bank Charges -
Commitment Fees -
Documentary Stamps Expenses -
Interest Expenses 40,797,838.91 40,797,838.91
Other Financial Charges 1,204,614.34 1,204,614.34
Income before Subsidies, Donations andExtraordinary Items 165,592,693.41 156,262,635.61 9,330,057.80 -
Add: Subsidy from Other National Government Agencies -
Subsidy from Other LGUs -Subsidy from Other Funds 44,500,000.00 44,500,000.00
Total 44,500,000.00 44,500,000.00 - -
Less: Subsidy to National Government Agencies -
Subsidy to Local Government Units 6,352,964.00 6,352,964.00Subsidy to Govt Owned and Controlled
Corp -
Subsidy to NGOs/Pos 7,971,720.33 7,971,720.33
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City Government of Iligan Annex B
Statement of Income and Expenses, by UnitFor the Year Ended December 31, 2012
PARTICULARS CONSOLIDATED GENERAL FUNDSPECIAL
EDUCATION
FUND
TRUSTFUND
Subsidy to Other Funds 44,500,000.00 44,500,000.00
Donations 12,512,975.85 12,265,975.85 247,000.00
Total 71,337,660.18 71,090,660.18 247,000.00 -
Income before Extraordinary Items 138,755,033.23 129,671,975.43 9,083,057.80 -
Add: (Less) Extraordinary Items -
Gain/Loss on foreign Exchange -
Gain/Loss on Sale of Disposed Assets -
Gain/Loss on Sale of Securities -
NET INCOME 138,755,033.23 129,671,975.43 9,083,057.80 -
CHECKING
Net Income vs. Current Operations (BS) - - - -
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City Government of Iligan Annex C
Statement of Cash Flows, by Unit
For the Year Ended December 31, 2012
PARTICULARS TOTAL GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Cash Flows from Operating Activities
Cash Inflows
Share from Internal Revenue Allotment 732,393,920.00 732,393,920.00
Collection from Taxpayers 374,958,690.05 308,503,281.93 66,455,408.12Receipts from sale of goods and
services 14,487,520.38 14,487,520.38
Interest Income 5,433,907.11 4,769,948.02 663,959.09
Dividend Income -
Other Receipts 133,699,775.65 118,661,184.13 286,396.47 14,752,195.05
Total Cash Inflows 1,260,973,813.19 1,178,815,854.46 67,405,763.68 14,752,195.05
Cash Outflows
Payment to-
Suppliers/Creditors 280,837,760.48 222,200,960.18 32,561,774.49 26,075,025.81
Employees 708,317,570.31 658,601,872.93 44,129,915.24 5,585,782.14
Interest Expenses 40,797,838.91 40,797,838.91
Other Disbursements 403,148,903.19 402,612,035.05 509,499.46 27,368.68
Total Cash Outflows 1,433,102,072.89 1,324,212,707.07 77,201,189.19 31,688,176.63
Cash Provided by (Used In) (172,128,259.70) (145,396,852.61) (9,795,425.51) (16,935,981.58)
Cash flows From Investing Activities -Cash Inflows
Sale of Property, Plant and Equipment -
Sale of Debt Securities of Other Entities - -Collection of Principal on Loans to Other
Entities - -
Total Cash Inflows - - - -
Cash OutflowsPurchase of Property, Plant &Equipment
& Public Infrastructure 31,745,682.85 30,313,245.85 1,432,437.00Purchase of Debt Securities of Other
Entities -
Grant/Loans to Other Entities -Total Cash Outflows 31,745,682.85 30,313,245.85 1,432,437.00 -
Cash Provided by (Used In) (31,745,682.85) (30,313,245.85) (1,432,437.00) -
Cash Flows From Financing Activities: -
Cash Inflows
Issuance of Debt Securities -
Acquisition of Loan 455,265,650.98 455,265,650.98
Total Cash Inflows 455,265,650.98 455,265,650.98 - -
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City Government of Iligan Annex C
Statement of Cash Flows, by Unit
For the Year Ended December 31, 2012
PARTICULARS TOTAL GENERAL FUNDSPECIAL
EDUCATIONFUND
TRUST FUND
Cash OutflowsRetirement/Redemption of Debt
Securities -
Payment of Loan Amortization 114,568,167.93 114,568,167.93
Total Cash Outflows 114,568,167.93 114,568,167.93 - -
Cash Provided by (Used In) 340,697,483.05 340,697,483.05 - -
Net Cash Provided by (Used in) 136,823,540.50 164,987,384.59 (11,227,862.51) (16,935,981.58)
Cash at the Beginning of the Period 1,288,318,945.11 793,271,619.62 57,448,977.20 437,598,348.29
Cash at the End of the Period 1,425,142,485.61 958,259,004.21 46,221,114.69 420,662,366.71
CASH END VS. TOTAL CASH INBALANCE SHEET - - - -
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Annex D
1 CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS I - Current Year Appropriations
1000 General Public Services 1010 Executive Services (Governor/Mayor) 1011 General Administration
Personal Services 5,342,867.00 5,342,867.00 4,896,272.04 - 446,594.96 Maintenance & Other Operating Expenses 53,060,844.81 53,060,844.81 50,496,115.28 - 2,564,729.53 Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 58,403,711.81 58,403,711.81 55,392,387.32 - 3,011,324.49
1013 Civil Security
Personal Services 18,701,412.00 18,701,412.00 17,444,825.50 - 1,256,586.50 Maintenance & Other Operating Expenses 4,024,000.00 4,024,000.00 3,443,763.30 - 580,236.70 Capital Outlay - - - - -
Financial Expenses - - - - - Sub-Total 22,725,412.00 22,725,412.00 20,888,588.80 - 1,836,823.20
1015 License Inspection Service Personal Services 2,083,379.00 2,083,379.00 1,961,375.59 - 122,003.41 Maintenance & Other Operating Expenses 419,700.00 419,700.00 414,800.03 - 4,899.97 Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 2,503,079.00 2,503,079.00 2,376,175.62 - 126,903.38
1020 Legislative Services 1021 Legislation
Personal Services 22,606,859.00 22,606,859.00 22,586,050.79 - 20,808.21 Maintenance & Other Operating Expenses 51,938,314.48 51,938,314.48 51,038,162.61 - 900,151.87 Capital Outlay 270,000.00 270,000.00 - - 270,000.00 Financial Expenses - - - - -
Sub-Total 74,815,173.48 74,815,173.48 73,624,213.40 - 1,190,960.08
1022 Support Services (Secretariat) Personal Services 11,943,810.00 11,943,810.00 11,815,230.87 - 128,579.13 Maintenance & Other Operating Expenses 3,753,735.00 3,753,735.00 3,617,539.13 - 136,195.87 Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 15,697,545.00 15,697,545.00 15,432,770.00 - 264,775.00
1030 Administrative Services (Administrator) 1031 General Administration
Personal Services 4,888,008.00 4,888,008.00 4,558,332.55 - 329,675.45 Maintenance & Other Operating Expenses 9,948,500.00 9,948,500.00 9,663,180.74 - 285,319.26 Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 14,836,508.00 14,836,508.00 14,221,513.29 - 614,994.71
1032 Personnel Officer
Personal Services 10,996,149.00 10,996,149.00 9,526,634.19 - 1,469,514.81 Maintenance & Other Operating Expenses 6,503,760.00 6,503,760.00 6,179,509.53 - 324,250.47 Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 17,499,909.00 17,499,909.00 15,706,143.72 - 1,793,765.28
Republic of the Philippines City Government of Iligan
Buhanginan Hills, Pala-o, Iligan City
BALANCES OF FUNCTION/PROGRAM/PROJECT
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES GENERAL FUND
2012
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2
CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
1040 Planning and Development Coordination
1041 General Administration
Personal Services 10,858,806.00 10,858,806.00 10,273,417.99 - 585,388.01
Maintenance & Other Operating Expenses 1,573,000.00 1,573,000.00 1,310,754.86 - 262,245.14 Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 12,431,806.00 12,431,806.00 11,584,172.85 - 847,633.15
1050 Civil Registry
1051 General Administration
Personal Services 6,641,884.00 6,641,884.00 5,818,723.23 - 823,160.77
Maintenance & Other Operating Expenses 960,000.00 960,000.00 718,260.20 - 241,739.80
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 7,601,884.00 7,601,884.00 6,536,983.43 - 1,064,900.57
1060 General Services
1061 General Administration
Personal Services 20,934,507.00 20,934,507.00 19,249,591.77 - 1,684,915.23
Maintenance & Other Operating Expenses 3,809,800.00 3,809,800.00 3,307,410.38 - 502,389.62
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 24,744,307.00 24,744,307.00 22,557,002.15 - 2,187,304.85
1070 Budgeting Services
1071 General Administration
Personal Services 8,073,111.00 8,073,111.00 7,713,090.76 - 360,020.24
Maintenance & Other Operating Expenses 1,659,800.00 1,659,800.00 1,205,851.35 - 453,948.65
Capital Outlay 100,000.00 100,000.00 - - 100,000.00
Financial Expenses - - - - -
Sub-Total 9,832,911.00 9,832,911.00 8,918,942.11 - 913,968.89
1080 Accounting Services
1081 General Administration
Personal Services 11,287,916.00 11,287,916.00 10,152,954.19 - 1,134,961.81
Maintenance & Other Operating Expenses 1,956,000.00 1,956,000.00 1,613,855.94 - 342,144.06
Capital Outlay 400,000.00 400,000.00 137,400.00 - 262,600.00
Financial Expenses - - - - - Sub-Total 13,643,916.00 13,643,916.00 11,904,210.13 - 1,739,705.87
1090 Treasury Services
1091 General Administration
Personal Services 24,872,873.00 24,872,873.00 22,757,479.38 - 2,115,393.62
Maintenance & Other Operating Expenses 5,184,500.00 5,184,500.00 4,771,108.99 - 413,391.01
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 30,057,373.00 30,057,373.00 27,528,588.37 - 2,528,784.63
1100 Assessment of Real Property
1101 General Administration
Personal Services 17,665,299.00 17,665,299.00 16,561,570.49 - 1,103,728.51
Maintenance & Other Operating Expenses 2,056,850.00 2,056,850.00 1,595,951.10 - 460,898.90
Capital Outlay 221,650.00 221,650.00 - - 221,650.00
Financial Expenses - - - - -
Sub-Total 19,943,799.00 19,943,799.00 18,157,521.59 - 1,786,277.41
1110 Auditing Services
1111 General Administration
Personal Services - - - - -
Maintenance & Other Operating Expenses 922,000.00 922,000.00 545,662.94 - 376,337.06
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 922,000.00 922,000.00 545,662.94 - 376,337.06
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
1120 Information S ervices
1121 General Administration
Personal Services 1,000,953.00 1,000,953.00 906,732.13 - 94,220.87
Maintenance & Other Operating Expenses 934,200.00 934,200.00 913,271.18 - 20,928.82 Capital Outlay 80,000.00 80,000.00 61,435.00 - 18,565.00
Financial Expenses - - - - -
Sub-Total 2,015,153.00 2,015,153.00 1,881,438.31 - 133,714.69
1122 Library Services
Personal Services 1,007,607.00 1,007,607.00 872,887.92 - 134,719.08
Maintenance & Other Operating Expenses 137,200.00 137,200.00 120,717.68 - 16,482.32
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 1,144,807.00 1,144,807.00 993,605.60 - 151,201.40
1130 Legal Services
1131 General Administration
Personal Services 4,142,295.00 4,142,295.00 3,653,453.59 - 488,841.41
Maintenance & Other Operating Expenses 906,500.00 906,500.00 616,008.75 - 290,491.25
Capital Outlay - - - - -
Financial Expenses - - - - - Sub-Total 5,048,795.00 5,048,795.00 4,269,462.34 - 779,332.66
1140 Prosecution Services
1141 General Administration
Personal Services - - - - -
Maintenance & Other Operating Expenses 543,400.00 543,400.00 474,998.86 - 68,401.14
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 543,400.00 543,400.00 474,998.86 - 68,401.14
1150 Adminstratiion of Justice
1151 RTC Branch I
Maintenance & Othe r Oper ating Ex penses 91 ,260.00 91,260.00 25,541.42 - 65,718.58
1151-1 RTC Branch II
Maintenance & Othe r Oper ating Ex penses 87 ,456.00 87,456.00 69,620.00 - 17,836.00
1151-2 RTC Branch III
Maintenance & Othe r Oper ating Ex penses 97 ,900.00 97,900.00 56,320.00 - 41,580.00 1151-3 RTC Branch IV
Maintenance & Othe r Oper ating Ex penses 79 ,000.00 79,000.00 69,711.02 - 9,288.98
1151-4 RTC Branch V
Maintenance & Othe r Oper ating Ex penses 85 ,900.00 85,900.00 45,000.00 - 40,900.00
1151-5 RTC Branch VI
Maintenance & Othe r Oper ating Ex penses 85 ,900.00 85,900.00 60,000.00 - 25,900.00
1151-6 Clerk of Court
Maintenance & Othe r Oper ating Ex penses 55 ,000.00 55,000.00 28,500.00 - 26,500.00
1151-7 4th Sharia"H Court
Maintenance & Other Operating Expenses 179,900.00 179,900.00 159,630.39 - 20,269.61
1158 MTCC Branch I
Maintenance & Othe r Oper ating Ex penses 85 ,900.00 85,900.00 76,720.00 - 9,180.00
1158-1 MTCC Branch II
Maintenance & Othe r Oper ating Ex penses 85 ,900.00 85,900.00 68,360.00 - 17,540.00
1158-2 MTCC Clerk of Court in Cities
Maintenance & Othe r Oper ating Ex penses 82 ,600.00 82,600.00 33,000.00 - 49,600.00
Sub-Total 1,016,716.00 1,016,716.00 692,402.83 - 324,313.17
1190 Miscellaneous General Public Services
1999 Others
Personal Services 60,483,652.00 60,483,652.00 58,352,068.71 - 2,131,583.29
Maintenance & Other Operating Expenses 27,616,108.00 27,616,108.00 26,932,930.01 - 683,177.99
Capital Outlay 300,000.00 300,000.00 - - 300,000.00
Financial Expenses - - - - -
Sub-Total 88,399,760.00 88,399,760.00 85,284,998.72 - 3,114,761.28
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
1999-2 Register of Deeds
Personal Services - - - - -
Maintenance & Other Operating Expenses 1,798,600.00 1,798,600.00 1,777,068.38 - 21,531.62
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 1,798,600.00 1,798,600.00 1,777,068.38 - 21,531.62
3000 Education, Culture, Sports and Manpower
Development
3390 Other Education, Sports and Manpower
Development Services
3391 Cultural Projects
Personal Services 96,015.00 96,015.00 27,755.57 - 68,259.43
Maintenance & Other Operating Expenses 300,000.00 300,000.00 260,621.79 - 39,378.21
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 396,015.00 396,015.00 288,377.36 - 107,637.64
3392 Sports Development/Physical Fitness
Personal Services 1,036,794.00 1,036,794.00 981,370.48 - 55,423.52
Maintenance & Other Operating Expenses 3,052,200.00 3,052,200.00 2,904,143.01 - 148,056.99
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 4,088,994.00 4,088,994.00 3,885,513.49 - 203,480.51
4000 Health S ervices
4410 Health Services
4411 General Administration
Personal Services 33,433,940.00 33,433,940.00 30,275,730.03 - 3,158,209.97
Maintenance & Other Operating Expenses 5,954,777.00 5,954,777.00 3,049,024.11 - 2,905,752.89
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 39,388,717.00 39,388,717.00 33,324,754.14 - 6,063,962.86
4420 Hospital
4421 General Administration
Personal Services 58,631,851.00 58,631,851.00 49,464,712.11 - 9,167,138.89
Maintenance & Other Operating Expenses 23,496,056.00 23,496,056.00 18,253,328.81 - 5,242,727.19
Capital Outlay 320,000.00 320,000.00 - - 320,000.00
Financial Expenses - - - - -
Sub-Total 82,447,907.00 82,447,907.00 67,718,040.92 - 14,729,866.08
4990 Miscellaneous Health Services
4999 Others
Personal Services - - - - -
Maintenance & Other Operating Expenses 10,374,032.00 10,374,032.00 10,231,398.26 - 142,633.74
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 10,374,032.00 10,374,032.00 10,231,398.26 - 142,633.74
6522 Housing and Community Development
6510 Housing Projects
6511 General Administration
Personal Services - - - - -
Maintenance & Other Operating Expenses 600,000.00 600,000.00 536,718.61 - 63,281.39
Capital Outlay - - - - -
Financial Expenses - - - - - Sub-Total 600,000.00 600,000.00 536,718.61 - 63,281.39
6540 Community Developmnent
6641 General Administration
Personal Services 2,460,400.00 2,460,400.00 2,447,651.15 - 12,748.85
Maintenance & Other Operating Expenses 191,200.00 191,200.00 173,246.86 - 17,953.14
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 2,651,600.00 2,651,600.00 2,620,898.01 - 30,701.99
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
6542 Resettlement, Zonal Improvement Projects,
Urban & Rural Renewal, Etc.
Personal Services 1,088,366.00 1,088,366.00 1,026,860.72 - 61,505.28
Maintenance & Other Operating Expenses 322,400.00 322,400.00 312,249.96 - 10,150.04 Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 1,410,766.00 1,410,766.00 1,339,110.68 - 71,655.32
7000 Social Welfare Services
7610 Social Welfare Services
7611 General Administration
Personal Services 14,923,532.00 14,923,532.00 13,630,835.17 - 1,292,696.83
Maintenance & Other Operating Expenses 6,182,120.00 6,182,120.00 5,796,837.89 - 385,282.11
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 21,105,652.00 21,105,652.00 19,427,673.06 - 1,677,978.94
7620 Family Planning Services
7621 General Administration
Personal Services 3,240,213.00 3,240,213.00 3,167,797.70 - 72,415.30
Maintenance & Other Operating Expenses 191,000.00 191,000.00 166,658.86 - 24,341.14
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 3,431,213.00 3,431,213.00 3,334,456.56 - 96,756.44
7990 Miscellaneous, Other Social Services
7999 Others
Personal Services - - - - -
Maintenance & Other Operating Expenses 636,000.00 636,000.00 554,647.18 - 81,352.82
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 636,000.00 636,000.00 554,647.18 - 81,352.82
8000 Economic Services
8710 Agricultural Services
8711 General Administration
Personal Services 5,912,340.00 5,912,340.00 5,267,700.75 - 644,639.25
Maintenance & Other Operating Expenses 2,203,000.00 2,203,000.00 1,913,187.01 - 289,812.99
Capital Outlay - - - - -
Financial Expenses - - - - - Sub-Total 8,115,340.00 8,115,340.00 7,180,887.76 - 934,452.24
8720 Veterinary Services
8721 General Administration
Personal Services 7,645,806.00 7,645,806.00 7,539,332.05 - 106,473.95
Maintenance & Other Operating Expenses 2,112,300.00 2,112,300.00 1,885,843.44 - 226,456.56
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 9,758,106.00 9,758,106.00 9,425,175.49 - 332,930.51
8730 Natural Resources Services
8731 General Administration
Personal Services 22,597,110.00 22,597,110.00 20,441,605.22 - 2,155,504.78
Maintenance & Other Operating Expenses 18,999,900.00 18,999,900.00 13,744,020.40 - 5,255,879.60
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 41,597,010.00 41,597,010.00 34,185,625.62 - 7,411,384.38
8750 Engineering Services
8751 General Administration
Personal Services 4,930,547.00 4,930,547.00 4,653,170.89 - 277,376.11
Maintenance & Other Operating Expenses 676,500.00 676,500.00 574,764.06 - 101,735.94
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 5,607,047.00 5,607,047.00 5,227,934.95 - 379,112.05
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
8751-1 CEO-Planning, Designing & Programming Staff
Personal Services 4,763,393.00 4,763,393.00 4,529,482.79 - 233,910.21
Maintenance & Other Operating Expenses 353,854.00 353,854.00 350,864.03 - 2,989.97
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 5,117,247.00 5,117,247.00 4,880,346.82 - 236,900.18
8751-2 CEO-Quality Control Division
Personal Services 2,189,387.00 2,189,387.00 1,969,305.31 - 220,081.69
Maintenance & Other Operating Expenses 213,746.00 213,746.00 199,566.77 - 14,179.23
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 2,403,133.00 2,403,133.00 2,168,872.08 - 234,260.92
8751-3 CEO-Building & Industrial Safety Inspection Div.
Personal Services 7,636,430.00 7,636,430.00 7,477,807.58 - 158,622.42
Maintenance & Other Operating Expenses 13,347,120.00 13,347,120.00 13,273,782.00 - 73,338.00
Capital Outlay - - - -
Financial Expenses - - - -
Sub-Total 20,983,550.00 20,983,550.00 20,751,589.58 - 231,960.42
8752 CEO-Engineering Services Construction Division
Personal Services 2,965,214.00 2,965,214.00 2,712,807.72 - 252,406.28
Maintenance & Other Operating Expenses 273,880.00 273,880.00 231,239.94 - 42,640.06
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 3,239,094.00 3,239,094.00 2,944,047.66 - 295,046.34
8753 CEO-Engineering Services Maintenance Division
Personal Services 3,981,291.00 3,981,291.00 3,860,037.19 - 121,253.81
Maintenance & Other Operating Expenses 6,894,900.00 6,894,900.00 6,566,293.10 - 328,606.90
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 10,876,191.00 10,876,191.00 10,426,330.29 - 449,860.71
8754 CEO-Engineering Services Operation of Motor Pool
Personal Services 13,889,517.00 13,889,517.00 12,748,067.47 - 1,141,449.53
Maintenance & Other Operating Expenses 7,317,900.00 7,317,900.00 7,204,506.30 - 113,393.70 Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 21,207,417.00 21,207,417.00 19,952,573.77 - 1,254,843.23
8770 Operation of Water Works System
8771 General Administration
Personal Services 19,519,035.00 19,519,035.00 16,445,503.53 - 3,073,531.47
Maintenance & Other Operating Expenses 24,348,000.00 24,348,000.00 22,402,422.67 - 1,945,577.33
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 43,867,035.00 43,867,035.00 38,847,926.20 - 5,019,108.80
8810 Operation of Markets
8811 General Administration
Personal Services 11,824,786.00 11,824,786.00 9,871,312.02 - 1,953,473.98
Maintenance & Other Operating Expenses 5,568,644.00 5,568,644.00 2,758,888.67 - 2,809,755.33
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 17,393,430.00 17,393,430.00 12,630,200.69 - 4,763,229.31
8811-1 CEEDMO-Central Market
Personal Services 7,096,972.00 7,096,972.00 6,178,808.45 - 918,163.55
Maintenance & Other Operating Expenses 4,382,928.00 4,382,928.00 4,249,765.99 - 133,162.01
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 11,479,900.00 11,479,900.00 10,428,574.44 - 1,051,325.56
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
8812 Operation of Slaughterhouse
Personal Services 886,876.00 886,876.00 881,986.00 - 4,890.00
Maintenance & Other Operating Expenses 1,444,061.00 1,444,061.00 1,396,684.80 - 47,376.20
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total 2,330,937.00 2,330,937.00 2,278,670.80 - 52,266.20
8820 Operation of Transportation System
8821 General Administration
Personal Services - - - - -
Maintenance & Other Operating Expenses 3,432,700.00 3,432,700.00 2,120,096.98 - 1,312,603.02
Capital Outlay - - - -
Financial Expenses - - - - -
Sub-Total 3,432,700.00 3,432,700.00 2,120,096.98 - 1,312,603.02
8821-1 Integgrated Bus & Jeepney Ter minal (South Bound)
Personal Services - - - - -
Maintenance & Other Operating Expenses 4,124,000.00 4,124,000.00 3,597,401.07 - 526,598.93
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 4,124,000.00 4,124,000.00 3,597,401.07 - 526,598.93
8850 Economic Development Programs
8859 Other Economic Development Projects
Personal Services - - - - -
Maintenance & Other Operating Expenses 19,120,000.00 19,120,000.00 16,385,209.17 - 2,734,790.83
Capital Outlay 12,573,680.00 12,573,680.00 6,168,600.00 - 6,405,080.00
Financial Expenses - - - -
Sub-Total 31,693,680.00 31,693,680.00 22,553,809.17 - 9,139,870.83
8970 Livelihood Projects
8971 General Administration
Personal Services 2,575,822.00 2,575,822.00 2,447,822.16 - 127,999.84
Maintenance & Other Operating Expenses 453,000.00 453,000.00 343,593.08 - 109,406.92
Capital Outlay - - - -
Financial Expenses - - - -
Sub-Total 3,028,822.00 3,028,822.00 2,791,415.24 - 237,406.76
8990 Miscellaneous Economic Services
8999 Others
Personal Services - - - - -
Maintenance & Other Operating Expenses 44,572,000.00 44,572,000.00 44,500,000.00 - 72,000.00
Capital Outlay - - - -
Financial Expenses - - - -
Sub-Total 44,572,000.00 44,572,000.00 44,500,000.00 - 72,000.00
9000 Other Purpose
9910 Local Development Projects - Public Debt.
9911 Loan Amortization - Domestic
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total - - - - -
9911-1 Loan Amortization DBP-Hinaplanon Pumping Station
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total - - - - -
9911-2 Loan Amortization DBP-IBJT/Drainage Improvement
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total - - - - -
BALANCES OFFUNCTION/PROGRAM/PROJECT
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS APPROPRIATIONS ALLOTMENTS
9912 Loan Amortization - Foreign
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - - Financial Expenses - - - - -
Sub-Total - - - - -
9913 Interest Payments - Domestic
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total - - - - -
9913-1 Interest Payments DBP-Hinaplanon Pumping Station
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total - - - - -
9913-2 Interest Payments DBP-IBJT/Drainage Improvement
Personal Services - - - - - Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses 8,012,895.00 8,012,895.00 - - 8,012,895.00
Sub-Total 8,012,895.00 8,012,895.00 - - 8,012,895.00
9914 Interest Payments - Foreign
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - -
Capital Outlay - - - - -
Financial Expenses 6,014,825.00 6,014,825.00 3,506,929.63 - 2,507,895.37
Sub-Total 6,014,825.00 6,014,825.00 3,506,929.63 - 2,507,895.37
9930 Retirement and Other Benefits
9931 Lump-Sum Appropriations
Personal Services 37,642,814.00 37,642,814.00 33,494,421.42 - 4,148,392.58
Maintenance & Other Operating Expenses 5,116,000.00 5,116,000.00 3,947,500.00 - 1,168,500.00
Capital Outlay - - - - -
Financial Expenses - - - - - Sub-Total 42,758,814.00 42,758,814.00 37,441,921.42 - 5,316,892.58
9990 Miscellaneous Other Purposes
9993 Aids to National Government Agencies
Personal Services - - - - -
Maintenance & Other Operating Expenses 1,820,000.00 1,820,000.00 1,805,000.00 - 15,000.00
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 1,820,000.00 1,820,000.00 1,805,000.00 - 15,000.00
9994 Aids & Contributions to Government Agencies
Other than National, Local, Not Elsewhere
Classified
Personal Services - - - - -
Maintenance & Other Operating Expenses 23,523,132.00 23,523,132.00 23,461,240.05 - 61,891.95
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 23,523,132.00 23,523,132.00 23,461,240.05 - 61,891.95
9998 Budgetary Reserves
Personal Services - - - - -
Maintenance & Other Operating Expenses 47,592,250.00 47,592,250.00 15,542,501.47 - 32,049,748.53
Capital Outlay - - - - -
Financial Expenses - - - - -
Sub-Total 47,592,250.00 47,592,250.00 15,542,501.47 - 32,049,748.53
Grand-Total 1,012,706,016.29P 1,012,706,016.29P 882,659,510.21P -P 130,046,506.08P
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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Annex E
1
CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS PPROPRIATION ALLOTMENTS
CONTINUING APPROPRIATIONS
1000 General Public Services
1020 Legislative Services
1021 Legistration
Capital Outlay 35,814.00 35,814.00 24,800.00 - 11,014.00
1030 Adminstrative Services
1031 General Administration
Capital Outlay 58,185.00 58,185.00 10,620.00 - 47,565.00
1032 Personnel Officer
Capital Outlay 840,255.00 840,255.00 177,500.00 - 662,755.00
1040 Planning and Development Coordination
1041 General Administration
Capital Outlay 1,082,100.00 1,082,100.00 1,062,900.00 - 19,200.00
1060 General Services
1061 General Administration
Capital Outlay 7,759.72 7,759.72 - - 7,759.72
1070 General Services
1071 General Administration
Capital Outlay 101,916.62 101,916.62 - - 101,916.62
1080 General Services
1081 General Administration
Capital Outlay 977,155.74 977,155.74 773,130.00 - 204,025.74
1090 Treasury Services
1091 General Administration
Capital Outlay 206,955.76 206,955.76 160,000.00 - 46,955.76
1100 Assessment of Real Property
1101 General Administration
Capital Outlay 134,150.00 134,150.00 - - 134,150.00
1102 Real Property Tax Administration
Capital Outlay 28,062.00 28,062.00 - - 28,062.00
1130 Legal Services
1131 General Administration
Capital Outlay 25,040.00 25,040.00 - - 25,040.00
4000 Healh Services
4420 Hospital
4421 General Administration
Capital Outlay 414,675.00 414,675.00 135,000.00 - 279,675.00
4990 Miscellaneous Health Services4999 Others
Capital Outlay 41,004,087.18 41,004,087.18 2,367,576.15 - 38,636,511.03
6522 Housing & Community Development
6510 Housing Projects
6511 General Administration
Capital Outlay 54,670.00 54,670.00 - - 54,670.00
Capital Outlay 413,822.97 413,822.97 - - 413,822.97
GENERAL FUND
2012
BALANCES OF
FUNCTION/PROGRAM/PROJECT
epu c o t e pp nesty overnment o gan
u ang nan s, a a-o, gan ty
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES
(Continuing Appropriations)
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CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS PPROPRIATION ALLOTMENTS
8000 Economic Sevices
8710 Agricultural Services
8711 General Administration
Capital Outlay 222,022.35 222,022.35 95,021.92 - 127,000.43
8720 Veterinary Services
8721 General AdministrationCapital Outlay 6,500.00 6,500.00 - - 6,500.00
8730 Natural Resources Services
8731 General Administration
Capital Outlay 131,590.73 131,590.73 8,000.00 - 123,590.73
8750 Engineering Services
8751 General Administration
Capital Outlay 300,000.00 300,000.00 - - 300,000.00
8751-2 CEO-Quality Control Division
Capital Outlay 86,470.00 86,470.00 - - 86,470.00
8752 CEO-Engineering Services contruction
Division
Capital Outlay 5,000.00 5,000.00 - - 5,000.00
8753 CEO-Engineering Services MaintenanceDivision
Capital Outlay 123,055.00 123,055.00 117,500.00 - 5,555.00
8770 Operation of Waterworks System
8771 General Administration
Capital Outlay 253,507,167.46 253,507,167.46 94,448,875.47 - 159,058,291.99
8810 Operation of Markets
8811 General Administration
Capital Outlay 20,000.00 20,000.00 - - 20,000.00
8811-1 CEEDMO-Central Market
Capital Outlay 4,350.00 4,350.00 - - 4,350.00
8812 Operation of Slaughterhouse
Capital Outlay 25,775.24 25,775.24 - - 25,775.24
8820 Operation of Transportation System8821 General Administration
Capital Outlay 150,000.00 150,000.00 59,328.00 - 90,672.00
8850 Economic Development Programs
8859 Other Economic Development Projects
Maintenance & Other Operating Expenses 8,564,807.59 8,564,807.59 2,017,542.94 - 6,547,264.65
Capital Outlay 46,474,787.49 46,474,787.49 22,409,627.99 - 24,065,159.50
8990 Miscellaneous Economic Services
8999 Others
Maintenance & Other Operating Expenses 47,000,000.00 47,000,000.00 - - 47,000,000.00
9000 Other Purposess
9990 Miscellaneous Other Purposes
9998 Budgetary Reserves
Maintenance & Other Operating Expenses 95,159,527.76 95,159,527.76 33,162,597.08 - 61,996,930.68
Total 497,165,702.61P 497,165,702.61P 157,030,019.55P -P 340,135,685.06P
BALANCES OF
FUNCTION/PROGRAM/PROJECT
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Annex F
CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS PPROPRIATIONS ALLOTMENTS
I - Current Year Appropriations
3000 Education, Cultures, Sports and Mapower
Development
3310 School Supervison
3311 General Administration
Personal Services 28,610,906.00 28,610,906.00 26,955,402.65 - 1,655,503.35
Maintenance & Other Operating Expenses 6,630,950.00 6,630,950.00 3,056,191.59 - 3,574,758.41
Capital Outlay 5,198,805.14 5,198,805.14 928,752.60 - 4,270,052.54
Sub-Total 40,440,661.14 40,440,661.14 30,940,346.84 - 9,500,314.30
3320 Public Education
3321 Elementary Schools
Personal Services 11,047,628.00 11,047,628.00 10,221,525.62 - 826,102.38
Maintenance & Other Operating Expenses - - - - -
Capital Outlay - - - - -
Sub-Total 11,047,628.00 11,047,628.00 10,221,525.62 - 826,102.38
3322 Secondary Schools
Personal Services 14,125,669.00 14,125,669.00 12,420,077.86 - 1,705,591.14
Maintenance & Other Operating Expenses - - - - -
Capital Outlay - - - - -
Sub-Total 14,125,669.00 14,125,669.00 12,420,077.86 - 1,705,591.14
3325 Adult Education
Personal Services 903,500.00 903,500.00 887,300.00 - 16,200.00
Maintenance & Other Operating Expenses 308,000.00 308,000.00 240,296.89 - 67,703.11
Capital Outlay - - - - -
Sub-Total 1,211,500.00 1,211,500.00 1,127,596.89 - 83,903.11
3390 Other Education, Sports and Manpower
Development Services
3392 Sports Development/Physical Fitness
Personal Services - - - - -
Maintenance & Other Operating Expenses 5,060,000.00 5,060,000.00 4,738,719.30 - 321,280.70
Capital Outlay - - - -
Sub-Total 5,060,000.00 5,060,000.00 4,738,719.30 - 321,280.70
3399 Sundry Educational Services
Personal Services - - - - -
Maintenance & Other Operating Expenses 500,000.00 500,000.00 247,000.00 - 253,000.00
Capital Outlay - - - -
Sub-Total 500,000.00 500,000.00 247,000.00 - 253,000.00
Grand-Total 72,385,458.14 72,385,458.14 59,695,266.51 - 12,690,191.63
FUNCTION/PROGRAM/PROJECT
Republic of the PhilippinesCity Government of Iligan
Buhanginan Hills, Pala-o, Iligan City
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES
SPECIAL EDUCATION FUND
2012
BALANCES OF
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Annex G
CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS PPROPRIATION ALLOTMENTS
I - Current Year Appropriations
4000 Health S ervices
4910 Local Development Fund
4918 Purchase, Construction & Improvements
of Government Facilities - Health
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - - -
Capital Outlay 1,654,300.00 1,654,300.00 483,651.68 - 1,170,648.32
Sub-Total 1,654,300.00 1,654,300.00 483,651.68 - 1,170,648.32
8000 Economic Services
8910 Local Developemt Fund
8911 Agricultural Development Projects
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - - -
Capital Outlay 33,000.00 33,000.00 - - 33,000.00 Sub-Total 33,000.00 33,000.00 - - 33,000.00
8917 Repair & Maintenance of Government
Facilities - Economic Services
Personal Services - - - - -
Maintenance & Other Operating Expenses 2,285,800.00 2,285,800.00 38,803.27 - 2,246,996.73
Capital Outlay 1,659,907.00 1,659,907.00 109,969.00 - 1,549,938.00
Sub-Total 3,945,707.00 3,945,707.00 148,772.27 - 3,796,934.73
8918 Purchase, Construction & Improvement of
Government of facilities - Economic Services
Personal Services - - - - -
Maintenance & Other Operating Expenses - - - - -
Capital Outlay 52,765,665.94 52,765,665.94 34,530,342.65 - 18,235,323.29
Sub-Total 52,765,665.94 52,765,665.94 34,530,342.65 - 18,235,323.29
8919 Calamity Fund
Personal Services - - - - - Maintenance & Other Operating Expenses - - - - -
Capital Outlay 2,876,388.00 2,876,388.00 1,775,400.00 - 1,100,988.00
Sub-Total 2,876,388.00 2,876,388.00 1,775,400.00 - 1,100,988.00
9000 Other Purposes
9910 Local Development Projects-Public Debt
9911 Loan Amortization - Domestic
Financial Services 91,561,721.00 91,561,721.00 59,421,290.60 - 32,140,430.40
Sub-Total 91,561,721.00 91,561,721.00 59,421,290.60 - 32,140,430.40
9912 Loan Amortization-Foreign
Financial Expenses 2,066,315.00 2,066,315.00 2,066,314.01 - 0.99
Sub-Total 2,066,315.00 2,066,315.00 2,066,314.01 - 0.99
9913 Interest Payments-Domestics
Financial Expenses 41,922,649.00 41,922,649.00 35,507,763.16 - 6,414,885.84
Sub-Total 41,922,649.00 41,922,649.00 35,507,763.16 - 6,414,885.84
Grand-Total 196,825,745.94P 196,825,745.94P 133,933,534.37P -P 62,892,211.57P
BALANCES OFFUNCTION/PROGRAM/PROJECT
Republic of the Philippines
City Government of Iligan
Buhanginan Hills, Pala-o, Iligan City
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLI GATION AND BALANCES
SAGF-20% DEVELOPMENT FUND
2012
8/12/2019 COA Annual Audit Report 2012 - Iligan City
http://slidepdf.com/reader/full/coa-annual-audit-report-2012-iligan-city 140/140
Annex H
CODE APPROPRIATIONS ALLOTMENTS OBLIGATIONS PPROPRIATIONS ALLOTMENTS
Continuing Appropriations
4000 Health Services
4910 Local Development Fund
4918 Purchase, Construction & Improvements
of Government Facilities - Health
Main tenance & Other Opera ting Expenses 195,283.86 195,283.86 - - 195,283.86
Capital Outlay 3,496,838.32 3,496,838.32 1,880,052.64 - 1,616,785.68
Sub-Total 3,692,122.18 3,692,122.18 1,880,052.64 - 1,812,069.54
4919 Others
Main tenance & Other Opera ting Expenses 758,171.17 758,171.17 138,980.00 - 619,191.17
Capital Outlay 141,358.50 141,358.50 92,873.38 - 48,485.12
Sub-Total 899,529.67 899,529.67 231,853.38 - 667,676.29
6522 Housing and Community Development
6910 Local Development Fund6917 Repair & Maintenance of Gov't. Facilities-
Housing & Community Development
Maintenance & Other Operating Expenses - - - - -
Capital Outlay 46,110.45 46,110.45 - - 46,110.45
Sub-Total 46,110.45 46,110.45 - - 46,110.45
8000 Economic Services
8850 Economic Development Programs
8859 Other Economic Development Projects
Main tenance & Other Opera ting Expenses 953,784.88 953,784.88 - - 953,784.88
Capital Outlay 1,743,951.12 1,743,951.12 - - 1,743,951.12
Sub-Total 2,697,736.00 2,697,736.00 - - 2,697,736.00
8910 Local Development Fund
8911 Agricultural Development Projects
Maintenance & Other Operating Expenses 1,403,035.37 1,403,035.37 - - 1,403,035.37
Capital Outlay 1 459 392 37 1 459 392 37 126 700 00 1 332 692 37
BALANCES OF
FUNCTION/PROGRAM/PROJECT
(Continuing Appropriations)
Republic of the Philippines
City Government of Iligan
Buhanginan Hills, Pala-o, Iligan C ity
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATION AND BALANCES
SAGF-20% DEVELOPMENT FUND
2012