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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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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53

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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54

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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55

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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56

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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96

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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99

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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102

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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104

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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105

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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106

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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107

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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108

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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109

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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110

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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111

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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112

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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113

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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114

 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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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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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

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 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