COA Annual Audit Report (2013) - Iligan City

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Republic of the PhilippinesCOMMISSION ON AUDIT

Commonwealth Avenue, Quezon City

ANNUAL AUDIT REPORT

ON THE

CITY OF ILIGAN



CITY OF ILIGAN


OFFICE OF THE REGIONAL DIRECTORRegional Office No. XCagayan de Oro City

March 30, 2014

HONORABLE CELSO G. REGENCIACity MayorIligan City

Sir:

We are pleased to transmit the Annual Audit Report (AAR) on the audit of theaccounts and operations of the City of Iligan for the year ended December 31, 2013, in

compliance with Article IX-D of the Philippine Constitution and pertinent provisions ofSection 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 andregulations. 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 fairnessin 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



Copy Furnished:

The Honorable Members of the Sangguniang PanlungsodThru: The Secretary, Sangguniang Panlungsod

Iligan City

The Regional DirectorDepartment of Interior and Local GovernmentRegional Office No. X

Cagayan de Oro City

The Regional DirectorBureau of Local Government FinanceRegional Office No. XCagayan de Oro City

The Regional Director

Department of Budget and ManagementRegional Office No. XCagayan de Oro City

The Regional Director National Economic Development AuthorityRegional Office No. X

Cagayan de Oro City




Regional Office XAudit Group G

Iligan City

Office of the Supervising Auditor

March 14, 2014

ATTY. ROY L. URSAL Director IVRegional DirectorCOA Regional Office No. XCagayan de Oro City

Sir:

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 haveaudited the Annual Audit Report (AAR) on the City of Iligan for the year endedDecember 31, 2013.

The audit was conducted to ascertain the propriety of financial transactions andthe 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,P t II D t il d Fi di d R d ti P t III th St t f P i Y ’



EXECUTIVE SUMMARY

Highlights of Financial Operations

A. Financial Condition

As of December 31, 2013, the consolidated financial condition of the City,excluding Barangays, showed a total asset of P4.936 billion, total liabilities of 1.626

billion and equity of P3.309 billion.

Particulars CY 2013 CY 2012 Increase (Decrease)Amount Percent

Assets 4,936.277 4,798.310 137.967 2.79Liabilities 1,626.627 2,046.485 -419.858 (25.81)Government Equity 3,309.649 2,751.825 557,824 16.85

B. Results of Operations

Total income derived from all sources amounted to P1.625 billion while expensesincurred amounted to P1.047 billion resulting to a net income of P518.578 million:

Particulars CY 2013 CY 2012Increase (Decrease)

Amount Percent

Total Income 1,625.558 1,124.252 501.306 30.84Total Expenses 1,047.720 958.659 89.061 8.50 Net Operating Income 577.838 165.593 412.245 71.34Less: Subsidies 59 260 26 837 32 423 54 71



Scope of Audit

The audit covered the accounts and operations of the City Government of Iliganfor the period January 1 to December 31, 2013. The audit was undertaken to ascertain thefairness 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.

Independent Auditor’s Report

The Auditor rendered a qualified opinion on the fairness of presentation of thefinancial 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 City Government was bestowed the “Seal of Good Housekeeping” - acertificate in recognition of its efforts in advancing the principles of accountability andtransparency in local governance for Calendar Year 2011 by the Department of Interiorand Local Government, but was not however, consistently made it in the succeedingyears.

It diligently complied with tax regulations imposed by the Bureau of InternalRevenue the withholding of taxes from salaries and wages of all employees and from itssuppliers of goods and services.



1.1 Details of asset accounts shown in the Financial Statements included negative

balances and immaterial amounts indicating that these were not adjusted toreflect the correct balance of an account.

Require the Accounting Department to cause the analysis and reconciliation of

the individual accounts, and require the necessary adjustments by drawing the

Journal Entry Voucher taking-up the appropriate adjusting entry/ies.

1.2 The account Cash – Disbursing Officers totaling P13,991,975.21 of the

P111,341,975.21 outstanding balance from all funds, which were drawn andgranted for specific purpose and time bounded activity were not only

liquidated on time but some were more than a year old and over and some

have become dormant in violation of Sec. 89 of PD 1445 and COA Circular

No. 97-002.

Compel all accountable officials to produce without delay their reports of

disbursements together with supporting documents and prepare the required

Liquidation Reports for submission to the accounting department for itsappropriate action;

a) Compel all accountable officials to produce without delay their reports of

disbursements together with supporting documents and prepare the

required Liquidation Reports for submission to the accounting department

for its appropriate action;

b) Require the immediate refund of all unused cash advances;

c) Enforce the penal sanctions to those who cannot comply;



1.3 The balance of P101,009.65 of account Petty Cash Funds in the balance sheet

indicated that the funds were not liquidated at the end of the year contrary toSec. 48 of the NGAS Manual for Local Government Units.

Have the Petty Cash Fund Custodians examined by its fiscal examiners

immediately; require the return of unused balance to the Treasurer/Cashier and

the Accounting Department to cause all expenditures for CY 2013 paid out of the

fund recorded as prior years adjustments in CY 2014 before setting up a PettyCash Fund for CY 2014 pursuant to Section 48 of the NGAS Manual. Thereafter,

the provisions provided in the NGAS Manual should be strictly adhered to.

1.4 The valuation and existence of account “Other Investments and Marketable

Securities” amounting to P6M is doubtful, monitoring of the

implementation of the program has since been overlooked from the time it

was released in CY 2001.

Accounting Department, verify with LBP for excess funds, if any from its share,

retire the portion equivalent to the outstanding unpaid loans of the cooperatives

so that adjustments in the city’s books of accounts will be effected immediately. In

addition, the City Accountant should coordinate with LBP in obtaining the basis

for its writing-off of its share from the financing program which could also be

part of the city’s documentation of the failed program.

1.5 The Construction in Progress (CIP) accounts totaling P1,009,286,975.06

particularly public infrastructures for use by the general public were notclosed to the appropriate accounts upon completion of the project and were

not transferred to their respective registries and closed to the Government

E it t t th d f th



1.7 The City Government transferred the 20% development funds intended for

its development projects to the barangays for the latter to implement thedevelopment projects which are supposed to be implemented by the city

government. Such transfer was also affirmed by the Sangguniang

Panlungsod under its Resolution No. 13-433 dated Jun 17, 2013.

To ensure that the development projects are fully undertaken as programmed, the

City Government should take the following courses of actions:

Undertake all biddings and awards of all the development projects

programmed for the remaining months of CY 2013. The beneficiary-

barangays shall supervise and monitor the implementation of the projects;

Effect transfer of funds to the barangays in tranches based on the

percentage of accomplishment of the project duly validated by the

inspectorate team of the city;

The City Accountant will continue to take up the transfer in the books of the

city as “Due from LGUs. The barangays shall record in their books the

asset/expense accounts contra “Due to LGUs” account until the close of

CY 2013 transactions.

Thereafter, the City Government should implement at its end all barangay

development projects allocated and funded from the 20% Development

Funds.



tantamount to neglect of duty. In this regard, unliquidated cash advances

60 days and over should be immediately reported on or returned;

Study objectively and evaluate all request for travel for benchmarking

purposes and require a report on how good practices can be applied in

the city government and/or requiring the responsible official/s to prepare

a project proposal;

Stop the practice of allowing liquidation of cash advances by refundthrough payroll deduction. If cash advance was not undertaken or utilized

for official purposes, the same should be immediately returned intact to

the City Cashier and the immediate issuance of official receipt.

1.9 Cash Advances Accounts for intelligence and confidential funds amounting

to P99.6 million were closed to expense accounts in the absence of a credit

advice issued by the Chairman, Commission on Audit. Though a transmittal

letter for the liquidation of previous cash advances was produced by theaccounting department, no proof of receipt by the Chairman or his/her

representative was noted. Further, it was noted that the requirements of

COA Circular No. 92-385 and 2003-003 dated July 30, 2003 was not

complied with.

Premises considered, we recommended the following courses of actions:

1. Restore the accountability account “Cash – Disbursing Officer” and

closed the account only upon receipt of a credit advice issued by the

Office of the Chairman, Commission on Audit;



5. Address the incoherence and inconsistencies noted by the Sangguniang

Panlungsod on the requirements and compliance thereof, of DILG MC No.99-65.

6. We also recommended the compliance of persons liable on the additional

requirements communicated by the Office of the Chairman in their letter

dated February, 2014, copy each is presented as Annex G.

1.10 The Accounting Department was not able to submit fully the Bank

Reconciliation Statements of some of its bank accounts from September to

December, 2013 in violation of existing regulations, thus, reliability of Cash

in Bank balances presented in the balance sheet amounting to

P734,078,880.25 of the General Fund, P41,143,235.28 of the Special

Education Fund and P385,554,856.50 in the Trust Funds could not be

validated.

1. Management should address this deficiency immediately by adding qualified,

competent and dedicated personnel in the Accounting Department;

2. Require the City Accountant to give as one of its priority the reconciliation ofthe bank accounts to be able to determine discrepancies of each account anddraw adjusting entries for valid reconciling items through the preparation of

a Journal Entry Voucher; and

3. Coordinate with the City Treasurer and the City Accountant of the possibility

of trimming down the number of bank accounts by closing/merging redundant



January of each year to the City General Services Office for consolidation

and submission to the Accounting Department;

b) Require the City Accountant to reconcile and adjust the records, computethe value of actual supplies on hand at year-end based on the latest cost

and consolidated reports submitted by the CGSO and draw a Journal

Entry Voucher to take up the actual value of inventories in the books of

accounts.

c) The proper procedure prescribed under the NGAS Manual provided fromSec. 112 to Sec. 125, Chapter 7, Vol. I, should be strictly observed.

d) The LCE should address the constraints on storage area of the GSO byincluding in its appropriation and prioritization of the construction of anextension building for sufficient storage space of the GSO. The provision

of adequate storage area/space in the GSO should not be taken for granted as it paves the proper observance of prescribed procedures in the

internal control, safekeeping and flows of supplies or property of the government.

1.12 The existing procedures in the collection of income due the City Government

lack internal control checks and procedures. Apparently, such lack of

controls will result to greater possibility of under-collection and/or pilferages.

Introduce additional systems and processes to address existing weak points incollection such as but not limited to:

a. Adoption of a regular monitoring system and/or closer supervision by a



Conduct surprise cash counts should be frequently made by

authorized examiners

b. Review/evaluate controls on cash receptacles/vault, that is, if under dual

control, one person holds the key and the other, the combination and that

one person would not have access to both.

At no instance should personal cash/belongings be placed insidereceptacles/vault;

Collecting Officers/other employees handling cash should be provided with safe and that duplicate combination should be filed

with the authorized official. The combination should be changedwhenever there is a change of custodian.

c. Conduct periodic reshuffling of collectors to deter familiarity.

d. Implement risk management in the operations particularly those handling

sensitive functions.

1.13 The Internal Audit Service (IAS) required under EO No. 278, s. 1992 and

AO No. 70, s. 2003 was not organized by the City Government.

Management should immediately constitute an IAS to be staffed by assigning ordeploying personnel from other departments/offices or units of the city

government pursuant to Sec. 4 of AO 278.



b) Report immediately all undelivered items, follow-up and document

subsequent delivery by preparing separate inspection and acceptancereport;

c) Require the BAC to immediately blacklist the erring supplier and to

impose the equivalent liquidated damages;

d) Require the ECCD and the Bids and Awards Committee that goods to berequisitioned/bidded out should be classified as to the line of business

engaged into by the prospective supplier (that is, supplier/trader of meat, fish, vegetable, fruits) and that ordering and pricing should not be specified “by lot”;

e) Require the Bids and Awards Committee to justify and indicate the legalbasis for bidding out multiple items on a lot basis when the items could be

priced individually;

f) Devise a most practical and facilitative manner of procuring the foodstuff such as having it procured individually through petty cash per day care

center without violating the provisions of the Administrative Order;

1.15 The Program of Works and procurement of equipment for the waterworks

system of the City Government were analogous with projects already

completed and/or implemented and equipment already delivered in CY 2013and CY2014.

Management should constitute an independent team (with technical expertise) to



terminal and at the same time save on costs on rental, equipment, utilities,

manpower and supervision costs..

F. Status of Implementation of Prior Year’s Audit Recommendations

Of the forty three (43) prior years’ audit recommendations, four (4) were fullyimplemented, thirty one (31) partially implemented and eight (8) were not implemented.



TABLE OF CONTENTS

Part Subject Page

I AUDITED FINANCIAL STATEMENTS

Independent Auditor’s Report Statement of Management’s Responsibility for Financial

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

1

3

4679

2346

48



Part Subject Page

A-3 TRUST FUND

3.1 Comparative Balance Sheet3.2 Comparative Statement of Cash Flows

A-4 STATUS OF APPROPRIATIONS, ALLOTMENTS AND

OBLIGATIONS

Annex B - Schedules

B-1 Details of Asset Accounts with Negative and Irregular BalancesB-2 Details of Unliquidated Cash AdvancesB-3 Details of Petty Cash Funds not Liquidated at Year-EndB-4 Details of Account – Other Investment/Marketable SecuritiesB-5 Details of Construction in Progress Accounts not Adjusted to

the Appropriate Infrastructure Accounts and Closed toGovernment Equity at Year-End

B-6 Details of Accounts Payable that are Five Years Old and OverB-7 Details of Accounts Payable with Negative BalancesB-8 Details of Releases for Confidential and Intelligence Funds of

the City Government of Iligan

123126

128

145150154155

156157162

164



Republic of the Philippines

COMMISSION ON AUDITOffice of the Regional Director

Regional Office No. 10Cagayan de Oro City

INDEPENDENT AUDITOR’S REPORT

HONORABLE CELSO G. REGENCIACity MayorIligan City

We have audited the accompanying financial statements of the City Government of

Iligan, which comprise the Consolidated Balance Sheet as at December 31, 2013 and therelated Consolidated Statement of Income and Expenses and Consolidated Statement ofCash Flows for the year then ended, and a summary of significant accounting policiesand other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financialstatements in accordance with state accounting principles, and for such internal control asmanagement determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.



accounting policies used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our audit opinion.

Basis for Qualified Opinion

As discussed in Part II of the report, Petty Cash Funds of P101,009, Cash – DisbursingOfficers of P111,341,975 and Due from Officers and Employees for P5,109,526 werenot only liquidated at year-end but have been past due for more than a year. Non-liquidation of these accounts contravenes the matching principle due to non-recording ofthe expense on the periods actually expended thereby overstating the assets andunderstating the operating expenses; the valuation of account Other Investments andMarketable Securities for P6M was doubtful and inaccurate; the value of the InventoriesAccount for P5.2 million and Property, Plant and Equipment (PPE) for P2.7 billion have

not been validated due to the absence of physical inventory reports; part of the PPE forP1 billion were Construction in Progress – Public Infrastructures (CIP) accounts whichwere not closed to the appropriate Public Infrastructure accounts then to governmentequity at year-end; and finally, P6.2 million of the payables were not reverted to thesurplus accounts having no claimants for more than five years. The details of thePayables also included negative balances amounting to P9.2 million indicatinginaccuracies in the accounts of the balance sheet.

Qualified Opinion

In our opinion, except for the effects of the matter described in the Basis for Qualified




CITY OF ILIGAN

OFFICE OF THE CITYMAYOR

STATEMENT OF MANAGEMENT’S RESPONSIBILITY

FOR FINANCIAL STATEMENTS

The Management of the CITY GOVERNMENT OF ILIGAN is responsiblefor all information and representation contained in the Consolidated Balance Sheet as of

December 31, 2013 and the related Consolidated Statement of Income and Expenses andStatement of Cash Flows for the period ended. The financial statements have been prepared in conformity with generally accepted accounting principles and reflect amountsthat 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 properly

authorized and recorded, assets are safeguarded against unauthorized use or dispositionand liabilities recognized.




CITY GOVERNMENT OF ILIGAN

CONSOLIDATED BALANCE SHEET

As of December 31, 2013(With Comparative Figures for 2012)

2013 2012

ASSETS

Current Assets:

Cash, ( Note 3) 1,501,578,649.05 1,425,142,485.61Receivables, (Note 4) 657,295,094.69 876,890,017.26Inventories, (Note 5) 5,156,334.30 4,780,620.07Prepayments, (Note 6) 11,136,319.97 33,186,611.14Other Current Assets 80,000.00 80,000.00

Total Current Assets 2,175,246,398.01 2,340,079,734.08

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 365,238,302.07 346,567,852.99

Buildings 486,476,536.68 487,627,681.89Leasehold Improvements 2,486,484.71 2,486,484.71

Office Equipment, Furniture and Fixtures 128,668,516.46 122,702,668.51M hi i d E i t 208 103 035 16 140 157 664 28



LIABILITIES AND EQUITY

LIABILITIESCurrent Liabilities, (Note 10) 609,242,553.70 602,008,218.51Long-Term Liabilities,( Note 11) 403,446,824.56 677,866,248.46Deferred Credits, (Note 12) 613,938,270.11 766,610,108.19

Total Liabilities 1,626,627,648.37 2,046,484,575.16

EQUITY

Government Equity, Beg. 2,751,825,297.93 2,639,724,467.56

Add/Deduct:Retained Operating Surplus 518,577,306.47 138,755,033.23Prior Year's Adjustments 64,788,360.28 (19,897,801.72)Transfers to Registry 25,542,246.72 (6,756,401.14)

Government Equity, End (Note 13) 3,309,648,717.96 2,751,825,297.93

TOTAL LIABILITIES AND EQUITY 4,936,276,366.33 4,798,309,873.09

See Accompanying Notes to Financial Statements



Republic of the PhilippinesCITY GOVERNMENT OF ILIGAN

CONSOLIDATED STATEMENT OF INCOME AND EXPENSESFor the year December 31, 2013

(With Comparative Figures for CY 2012)

2013 2012

INCOME, ( Note 14) Local Taxes 280,736,733.10 237,425,951.70Internal Revenue Allotment 782,162,233.00 732,393,920.00Permits and Licenses 10,765,172.02 8,017,002.38Service Income 20,377,935.58 16,108,122.04Business Income 113,467,613.44 98,749,478.64Other Income 418,047,967.63 31,557,528.08

Total Income 1,625,557,654.77 1,124,252,002.84Less: EXPENSES, (Note 15)

Personal Services 588,401,924.27 521,713,700.10Maintenance and Other OperatingExpenses 413,785,703.15 394,943,156.08Financial Expenses 45,532,482.78 42,002,453.25

Total Expenses 1,047,720,110.20 958,659,309.43

NET OPERATING INCOME 577,837,544.57 165,592,693.41Add: Subsidies to Other Funds 67,950,000.00 44,500,000.00

Total 645,787,544.57 210,092,693.41

L S b idi t Oth LGU 28 439 389 62 6 352 964 00





CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended December 31, 2013

(With Comparative Figures for 2012)

2013 2012

Cash Flows from Operating Activities

Cash Inflows:Share from Internal RevenueCollections 782,162,233.00 732,393,920.00Collection from Taxpayers 439,279,297.75 374,958,690.05Receipts from Sale of Good andServices 16,216,793.69 14,487,520.38Interest Income 4,834,341.51 5,433,907.11

Other Receipts 626,835,063.68 133,699,775.65Total Cash Inflows 1,869,327,729.63 1,260,973,813.19

Cash Outflows:Payments:To Suppliers/Creditors 355,495,169.64 280,837,760.48To Employees 732,146,951.63 708,317,570.31Interest Expense 43,108,514.38 40,797,838.91

Other Disbursements 293,861,323.07 403,148,903.19Total Cash Outflows 1,424,611,958.72 1,433,102,072.89

Net Cash Operating Activities 444 715 770 91 (172 128 259 70)



Cash Flows from Financing Activities

Cash Inflows:

Issuance of Debt Securities 0.00Acquisition of Loan 9,043,254.52 455,265,650.98

Total Cash Inflows 9,043,254.52 455,265,650.98

Cash Outflows:Retirement/Redemption of DebtSecurities 0.00Payment of Loan Amortization 283,462,678.42 114,568,167.93

Total Cash Outflows 283,462,678.42 (114,568,167.93)Net Cash from Financing Activities (274,419,423.90) 340,697,483.05

Net Increase in Cash 76,436,163.44 136,823,540.50

Cash at Beginning of the Year 1,425,142,485.61 1,288,318,945.11

Cash at the End of the Period 1,501,578,649.05 1,425,142,485.61

See Accompanying Notes to Financial Statements



Notes to Financial Statements

Note 1: General Profile of the City Government of Iligan

1.1 Iligan became a chartered city through R.A. No. 525 on June 16, 1950 and on19 September 2001, the city was transferred from Region 12 to Region 10 byvirtue of E.O. 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 andrecreation, 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 hasgreat 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 strain, not only in urban space, but also on the capacity of the localgovernment to deliver and provide employment and livelihood opportunities.

To address urban social ills, the city aims to implement a comprehensivehuman resource development approach that focuses on education and training;health, nutrition and socialized housing; and poverty alleviation.

1.2 Iligan City has a land use plan and an area development framework, which aimto locate public and community services strategically, to properly allocate landtowards sustainable development, and to rezone excess lands to allow newdevelopments for socioeconomic ends. Iligan has a relatively adequate

transport system and is accessible from major Philippine cities through air,water, and land.



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 with allowance ismade on a regular basis.

2.2.3 The Modified Obligation System is used to record allotments received andobligations 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 Average Method.

2.2.5 Supplies and materials purchased for the inventory purposes are recordedusing the Perpetual Inventory System.

2.2.6 Petty Cash Fund (PCF) account is maintained under the Imprest System.All replenishments are directly charged in the expense account. The PCF isnot used to purchase regular inventory items for stock.

2.2.7 Property Plant and Equipment are carried at cost less accumulateddepreciation.

2.2.8 Bonus paid to contractors for early completion of the work was added to thetotal cost of the project while liquidated damages paid for by the contractorfor delayed completion of the project was deducted from the cost.

2.2.9 For assets under construction, all related expenses incurred during theconstruction of the project are capitalized and those incurred after theconstruction are charged against the operating cost.



to fifty years. A residual value, computed at ten percent of the cost of assetis set and depreciation starts on the second month after purchase.

2.2.14 Payable accounts are recognized and recorded in the books of accounts onlyupon acceptance of the goods/inventory/other assets and rendition ofservices to the agency.

2.2.15 Accounts were again reclassified in conformity with the revised new Chartof Accounts prescribed under COA Circular No. 2003-002 dated August 1,2003.

2.2.16 Financial expenses such as bank charges are separately classified fromMOOE.

2.2.17 Transactions in foreign currencies are recorded in Philippine Peso based onthe 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. Foreignexchange gains/losses are recognized in the books of accounts.

2.2.19 Fundamental errors of prior years are corrected by using the Prior Year’s

Adjustment account. Errors affecting current year’s operation are chargedto the current year’s account.

Note 3: Cash and Cash in Banks - Php 1,501,578,649.05

This account consists of the following:



already recorded in October 31, 2013, in the amount of P 4,124.94. These arereflected in the Bank Reconciliation Statement under the General Fund as of

December 31, 2013.

Note 4: Receivables - Php 657,295,094.69


ACCOUNT TITLE CY 2013 CY 2012

Due from Officers and Employees 5,109,526.45 7,539,921.72Loans Receivables 9,252,027.30 9,498,067.77Real Property Tax Receivable 326,412,168.09 407,679,602.52Special Education Tax Receivable 278,297,759.57 350,144,763.22Due from NGAS 207,000.00 6,397,110.19Due from GOCCs 1,285,000.00 1,285,000.00Due from LGUs 23,581,942.56 81,105,870.66Due from NGOs/POs 7,245,126.33 7,290,263.78Due from Other Funds 1,563,484.40 1,535,742.60Receivables – Disallowances/Charges 4,051,605.65 4,273,491.52Other Receivables 289,454.34 140,183.28

TOTAL 657,295,094.69 876,890,017.26

Decreases in receivables were due to the following:

● Balances in Due from Officers and Employees under the General Fund reduces by34%. Such decrease was caused by liquidations and refund of cash advances incurrent and prior years.



Note 5: Inventories - Php 5,156,334.30



Office Supplies Inventory 203,059.00 244,644.50Accountable Forms Inventory 1,828,350.90 748,150.67Drugs and Medicine Inventory 781,026.40 791,211.90Medical, Dental and Laboratory Supplies Inventory 309,535.00 636,965.00Other Supplies Inventory 108,863.00 293,148.00

Spare Parts Inventory 1,925,500.00 2,066,500.00TOTAL 5,156,334.30 4,780,620.07

Inventories were recorded as much as P 5,156,334.30 as of December 31, 2013,showing an increase of 7% from the past year.

Increase in Accountable Forms Inventory was due to new purchases in current year.

Spare Parts Inventory composed of heavy duty tires for various heavy equipment purchased in year 2009.

Note 6: Prepayments Php 11,136,319.97


Prepaid Insurance - 1,146,581.79Advances to Contractors 11,136,319.97 32,040,029.35

TOTAL 11,136,319.97 33,186,611.14



Note 8: Property, Plant and Equipment (net) - Php 2,722,707,747.83

This account as shown on separate table consists of the following:

Property, Plant and Equipment (net) was totaled to P 2,722,707,747.83. Thesecomprise of the General Fund, Special Education Fund and Trust Fund broken downas follows: P 2,521,087,883.26, P 146,165,802.45 and P 55,454,062.12, respectively.

Depreciation is computed using the straight-line method. A residual value equivalent

to 10% of the acquisition cost/appraised value is being deducted before dividing thesame by the estimated useful life. Prior – year’s depreciation were recorded as prior – year’s adjustments while depreciation for current year was recorded as expense.

A Balance under Electrification, Power & Energy Structures of the General Fund issubject for review.

No transfer has been made for completed infrastructure projects as of December 31,2013, since the data acquired is subject for validation from past year.

Properties recommended as unserviceable and subjected for disposal was alreadydropped from the book.



15

Property, Plant and Equipment ( net ) P 2,722,707,747.83

ACCOUNT TITLE

GF SEF TF TOTAL ( GF + SEF + TF)

Balance as ofDecember

2013

Net Addition/(Reduction)


2012


2013



2012


2013

Net Addition/

(Reduction)


2012


2013



2012

Land 344,781,869. 19 15,720,459. 91 329,061,40 9.28 8,946,883.05 0.00 8,946,883.05 3,608,600.00 0.00 3,608,600.00 357,337,352.24 15,720,459.91 341,616,892.33

Land Improvements 5,907,979.61 0.00 5,907,979.61 354,853.90 0.00 354,853.90 0.00 0.00 0.006,262,833.51

0.00 6,262,833.51

Electrification, Power & EnergyStructures

1,190,695.67 (568,597.83) (1,759,293.50) 447,420.65 0.00 447,420.65 0.00 0.00 0.001,638,116.32

(568,597.83) (1,311,872.85)

Office Buildings 170,900,213.28 (1,106,448.84) 172,006,662.1293,727,842.55

0.0093,727,842.55

0.00 0.00 0.00264,628,055.83

(1,106,448.84) 265,734,504.67

School Buildings 26,099,335.15 0.00 26,099,33 5.155,848,013.28

(23,595.55)5,871,608.83 990,480.02

990,480.02 0.0032,937,828.45

966,884.47 31,970,943.98

Hospitals & Health Centers 6,175,588.60 (39,676.74) 6,215,265.34 0.00 0.00 0.002,631,010.52

(2,413.49)2,633,424.01 8,806,599.12

(42,090.23) 8,848,689.35

Markets & Slaughterhouses 106,634,188.30 (1,936,633.50) 108,570,821.80 0.00 0.00 0.00 0.00 0.00 0.00106,634,188.30

(1,936,633.50) 108,570,821.80

Other Structures 56,645,675.53 (986,360.86) 57,632,036.39 112,981.45 (469.26) 113,450.7116,711,208.00

1,953,973.0114,757,234.99 73,469,864.98

967,142.89 72,502,722.09

Leasehold Improvements, Land 2,486,484.71 0.00 2,486,484.71 0.00 0.00 0.00 0.00 0.00 0.00

2,486,484.71

0.00 2,486,484.71

Leasehold Improvements, Buildings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - 0.00 0.00

Office Equipment 32,741,940.73 1,873,863.79 30,868,076.941,345,431.55

30,850.701,314,580.85 1,713,190.91

(6,054.94)1,719,245.85 35,800,563.19

1,898,659.55 33,901,903.64

Furniture & Fixtures 22,330,999.85 1,845,223.17 20,485,776.688,553,770.72

(9,664.35)8,563,435.07 284,418.73

(1,807.24)286,225.97 31,169,189.30

1,833,751.58 29,335,437.72

IT Equipment & Software 46,907,643.35 2,376,281.59 44,531,361.76 362,160.26 92,819.62 269,340.64588,661.99

(6,919.44)595,581.43 47,858,465.60

2,462,181.77 45,396,283.83

Library Books 2,773,096.1 6 (47,490.69) 2,820,586.8510,681,761.42

(181,254.26)10,863,015.68 385,440.79

0.00385,440.79 13,840,298.37

(228,744.95) 14,069,043.32

Machineries 139,876.55 0.00 139,876.55 189,208.84 0.00 189,208.84 0.00 0.00 0.00 329,085.39 0.00 329,085.39



16

Agricultural, Fishery & ForestryEquipment

876,220.35 408,718.22 467,502.13 0.00 0.00 0.00 33,000.00 0.00 33,000.00 909,220.35 408,718.22 500,502.13

Communication Equipment 6,924,773.96 347,899.73 6,576,874.23 25,857.29 0.00 25,857.29 0.00 0.00 0.00 6,950,631.25 347,899.73 6,602,731.52

Construction & Heavy Equipment 136,118,753.86 28,980,209.24 107,138,544.62 0.00 0.00 0.00 0.00 0.00 0.00 136,118,753.86 28,980,209.24 107,138,544.62

Firefighting Equipment & Accessories 15,724,880.75 12,900,033.99 2,824,846.76 10,317.85 0.00 10,317.85 0.00 0.00 0.00 15,735,198.60 12,900,033.99 2,835,164.61

Hospital Equipment 30,227,690.10 24,810,739.99 5,416,950.11 0.00 0.00 0.00 53,350.00 (412.50) 53,762.50 30,281,040.10 24,810,327.49 5,470,712.61

Medical, Dental & Laboratory

Equipment6,618,705.78 (36,354.49) 6,655,060.27 0.00 0.00 0.00 64,025.00 0.00 64,025.00 6,682,730.78 (36,354.49) 6,719,085.27

Military & Police Equipment 1,684,396.44 568,244.50 1,116,151.94 0.00 0.00 0.00 0.00 0.00 0.00 1,684,396.44 568,244.50 1,116,151.94

Sport Equipment 1,032,142.48 (1,618.96) 1,033,761.44 235,642.50 0.00 235,642.50 0.00 0.00 0.00 1,267,784.98 (1,618.96) 1,269,403.94

Technical & Scientific Equipment 6,758,642.43 (24,912.00) 6,783,554.43 300,298.12 0.00 300,298.12 0.00 0.00 0.00 7,058,940.55 (24,912.00) 7,083,852.55

Other Machineries & Equipment 1,085,252.86 (7,176.84) 1,092,429.70 0.00 0.00 0.00 0.00 0.00 0.00 1,085,252.86 (7,176.84) 1,092,429.70

Motor Vehicles 81,792,059.24 5,601,084.45 76,190,974.79 1,104,519.97 0.00 1,104,519.97 4,697,523.27 (50,373.21) 4,747,896.48 87,594,102.48 5,550,711.24 82,043,391.24

Watercrafts 118,993.75 (8,887.50) 127,881.25 0.00 0.00 0.00 0.00 0.00 0.00 118,993.75 (8,887.50) 127,881.25

Other Transportation Equipment 279,500.00 (27,900.00) 307,400.00 0.00 0.00 0.00 0.00 0.00 0.00 279,500.00 (27,900.00) 307,400.00

Other Property, Plant & Equipment 263,469,376.02 200,275.53 263,269,100.49 341,000.23 0.00 341,000.23 302,348.10 0.00 302,348.10 264,112,724.35 200,275.53 263,912,448.82

Parks, Plazas & Monuments 2,427,223.00 0.00 2,427,223.00 0.00 0.00 0.00 0.00 0.00 0.00 2,427,223.00 0.00 2,427,223.00

Artesian Wells, Reservoir, PumpingStations & Conduits

91,850.38 28,975.41 62,874.97 384,335.11 0.00 384,335.11 0.00 0.00 0.00476,185.49

28,975.41 447,210.08

Irrigation, Canals & Laterals 42,901,095.17 0.00 42,901,095.17 0.00 0.00 0.00 0.00 0.00 0.00

42,901,095.17

0.00 42,901,095.17

Other Public Infrastructures 124,488,393.45 0.00 124,488,393.45 180.00 0.00 180.00 0.00 0.00 0.00124,488,573.45

0.00 124,488,573.45

Sub - Total 1,548,335,536.70 94,388,538.27 1,453,946,998.43 132,972,478.74 (91,313.10) 133,063,791.84 32,063,257.33 2,876,472.21 29,186,785.12 1,713,371,272.77 97,173,697.38 1,616,197,575.39

ACCOUNT TITLE

GF SEF TF TOTAL ( GF + SEF + TF)


2013



2012


2013



2012


2013

Net Addition/

(Reduction)


2012


2013



2012

Sub - Total 1,548,335,536.70 94,388,538.27 1,453,946,998.43 132,972,478.74 (91,313.10) 133,063,791.84 32,063,257.33 2,876,472.21 29,186,785.12 1,713,371,272.77 97,173,697.38 1,616,197,575.39



17

Reforestation - Upland 49,500.00 0.00 49,500.00 0.00 0.00 0.00 0.00 0.00 0.00 49,500.00 0.00 49,500.00

Construction in Progress - Agency Assets 271,669,880.77 18,776,816.10 252,893,064.67 12,956,636.81 (21,747,341.26) 34,703,978.07 17,715,140.79 0.00 17,715,140.79 305,312,183.53 (2,970,525.16) 273,777,520.93

Construction in Progress - Roads,Highways & Bridges

134,818,522.57 37,112,822.48 97,705,700.09 0.00 0.00 3,462,119.00 0.00 3,462,119.00 101,167,819.09 37,112,822.48 90,889,143.56

Construction in Progress - Parks,Plazas & Monuments

2,058,473.40 0.00 2,058,473.40 0.00 0.00 0.00 0.00 0.00 2,058,473.40 0.00 2,058,473.40

Construction in Progress - Artesian

Wells, Reservoirs, Pumping Station &Conduits

444,602,464.55 149,877,957.57 294,724,506.98 0.00 0.00 7,135.00 0.00 7,135.00 294,731,641.98 149,877,957.57 104,730,484.21

Construction in Progress - Irrigation,Canals and Laterals

30,781,914.14 9,341,714.55 21,440,199.59 0.00 0.00 0.00 0.00 0.00 21,440,199.59 9,341,714.55 19,101,803.79

Construction in Progress - FloodControls

3,769,296.82 8,588.80 3,760,708.02 0.00 0.00 0.00 0.00 0.00 3,760,708.02 8,588.80 3,280,873.82

Construction in Progress - Waterways, Aquaducts, Seawalls, River Walls andOthers

5,625,401.21 776,156.08 4,849,245.13 0.00 0.00 0.00 0.00 0.00 4,849,245.13 776,156.08 4,353,352.73

Construction in Progress - Other PublicInfrastructures

79,369,696.02 11,479,417.61 67,890,278.41 236,686.90 0.00 236,686.90 2,206,410.00 0.002,206,410.00

70,333,375.31 11,479,417.61 55,099,174.97

Construction in Progress -Reforestation - Marshland/Swampland

7,197.08 0.00 7,197.08 0.00 0.00 0.00 0.00 0.00 7,197.08 0.00 7,197.08

Total 972,752,346.56 227,373,473.19 745,378,873.37 13,193,323.71 (21,747,341.26) 34,940,664.97 23,390,804.79 0.00 23,390,804.79 1,009,336,475.06 205,626,131.93 553,347,524.49

GRAND TOTAL 2,521,087,883.26 321,762,011.46 2,199,325,871.80 146,165,802.45 (21,838,654.36) 168,004,456.81 55,454,062.12 2,876,472.21 52,577,589.91 2,722,707,747.83 302,799,829.31 2,169,545,099.88



Note 9: Other Assets - Php 32,322,220.49


ACCOUNT TITLE CY 2013 PY 2012

Work/Other Animals 1,555,924.00 1,555,924.00Breeding Stocks 28,217,431.28 28,217,431.28Other Assets 2,548,865.21 2,548,865.21

TOTAL 32,322,220.49 32,322,220.49

Total Other Assets (all funds) amounted to P 32,322,220.49. These comprised theGeneral Fund, Special Education Fund and Trust Fund, broken down as follows:P 29,893,447.28, P 2,195,773.21 and 233,000.00, respectively.

Note 10: Current Liabilities - Php 609,242,553.70

This account consists of the following:ACCOUNT TITLE CY 2013 CY 2012

Payables:

Accounts Payable 101,765,328.41 73,181,067.40

Due to Officers and Employees 32,326,656.72 9,621,256.25Sub-Total 134,091,985.13 82,802,323.65

Inter-Agency Payables:

Due to BIR 18,569,877.22 23,122,794.68Due to GSIS (967,701.09) (960,703.39)Due to PAG-IBIG 2,697,374.29 2,704,477.27



Accounts Payable (all funds) has increased to P 101,765,328.41 this year as comparedfrom past year’s P 73,181,067.40.

Due to GSIS has maintained a debit balance of P 967,701.09 (under the GeneralFund) increasing 7% from the past year’s 960,706.39 balance.

Due to Other NGAs represents collections from Fire Codes, annual fees for BusinessRegistry Databank of Chamber of Commerce & Industry Foundation Inc. under theGeneral Fund.

Due to LGUs represents barangay shares from collection of various local taxes of thecity of Iligan.

Due to Other Funds with a total balance of 4,126,126.67 under the General Fundmaintain an outstanding balance of P 175,000.00 intended for Gregorio T. LluchMemorial Hospital Medical Assistance coming from the PDAF of Cong. WaldenBello.

Note 11: Long-Term Liabilities - Php 403,446,824.56


ACCOUNT TITLE/NAME OF PROJECT CY 2013 PY 2012

National Government Agencies

MDFO-PRMDP 18,318,042.78 20,518,792.65TOTAL 18,318,042.78 20,518,792.65

Gov’t. Owned and/or Controlled

Corporation



ACCOUNT TITLE/NAME OF PROJECT CY 2013 PY 2012

(14,476,166.24) - 2n Released 13,571,405.84 28,952,332.48

LBP-WATER SYSTEM EXPANSION PROJ.(17,272,705.25) - 3r Released 16,193,161.16 34,545,410.50LBP-WATER SYSTEM EXPANSION PROJ.(69,574,896.52) - 4t Released 65,226,465.49 139,149,793.04LBP-WATER SYSTEM EXPANSION PROJ.(96,931,035.49) - 5t Released 80,511,985.06 171,758,901.44LBP-WATER SYSTEM EXPANSIONPROJECT

(22,135,669.16) - 6t Released 20,752,189.85 22,135,669.16LBP-WATER SYSTEM EXPANSION PROJ.(25,725,128.73) - 7t Released 24,117,308.19 25,725,128.73LBP-WATER SYSTEM EXPANSION PROJ.(15,194,710.96) - 8t Released 14,245,041.25 15,194,710.69LBP-WATER SYSTEM EXPANSION PROJ.(9,409,563.99) - 9t Released 8,821,466.25 9,409,563.99

LBP-WATER SYSTEM EXPANSION PROJ.(11,899,913.35) - 10 Released 11,156,168.77 11,899,913.35LBP-WATER SYSTEM EXPANSION PROJ.(16,828,754.83) - 11 Released 15,776,957.65 16,828,754.83LBP-WATER SYSTEM EXPANSION PROJ.(9,043,254.52) - 12t Released 8,658,435.18 -

TOTAL 306,460,607.98 534,117,561.21

GRAND TOTAL 403,446,824.56 677,866,248.46

Outstanding loans of the City Government of Iligan and releases remains at hand forCY 2013 under the General Fund:



Note 12: Deferred Credits - Php 613,938,270.11


ACCOUNT TITLE CY 2013 PY 2012

Deferred Real Property Tax Income 334,651,742.59 415,919,177.02Deferred Special Education Tax Income 278,297,329.47 350,144,333.12Other Deferred Credits 989,198.05 546,598.05TOTAL 613,938,270.11 766,610,108.19

Figures in CY 2013 comprised the Deferred Real Property Tax Income of P334,651,742.59 for the General Fund, Deferred Special Education Tax Income of P278,297,329.47 and Other Deferred Credits with a total amount of P 503,198.05composed of the General Fund - P 441,584.05, Special Education Fund – 7,614.00and Trust Fund – 54,000.00, respectively.

Note 13: Government Equity – Php 3,309,648,717.96

Composition:

EQUITY CY 2013 CY 2012

Government Equity, Beg. 2,751,825,297.93 2,639,724,467.56Add: Retained Operating Surplus

Current Operations 518,577,306.47 138,755,033.23Other Adjustments

EQUITY CY 2013 CY 2012



Note 14: Others

Total Operating Income derived from General Fund and Special Education Fund as ofDecember 31, 2013 amounted to P 1,625,557,654.77 as compared to past year 2012 P1,124,252,002.84, showing an increase of 31%.

Share from National Wealth as of December 31, 2013 has increased to P21,739,611.94 compared to last year’s P 21,058,502.90.

Share from IRA as of December 31, 2013 has increased also to P 782,162,233.00from past year P 732,393,920.00.

Share from Economic Zones as of December 31, 2013 has decreased to P2,956,981.59 compared from year 2012 share of P 3,744,896.99.

Interest Income as of December 31, 2013 showing an aggregate amount of P4,296,802.32 derived from General Fund – P 3,651,802.32 and Special EducationFund – P 644,985.06, respectively,

To take effect 2014, adjustment 20% share for DPWH from collection of BuildingPermit Fees and Inspection Fees per Department of Finance (DOF) Order No. 51-2012 dated August 3, 2010 and Bureau of Local Government Finance (BLGF)Memorandum Circular No. 18-2010 dated December 3, 2010.



PART II – FINDINGS AND RECOMMENDATIONS

1. Financial and Compliance

A. Deficiencies of Accounts Shown in the Financial Statements

1.1 Details of asset accounts shown in the Financial Statements included negative

balances and immaterial amounts indicating that these were not adjusted to

reflect the correct balance of an account.

Section 111 of Presidential Decree No. 1445 on the keeping of accounts of thegovernment, provides:

(1) The accounts of an agency shall be kept in such detail as is necessary tomeet the needs of the agency and at the same time be adequate to furnish the

information needed by fiscal or control agencies of the government.

(2) The highest standards of honesty, objectivity and consistency shall beobserved in the keeping of accounts to safeguard against inaccurate ormisleading information.

On the other hand, Section 112 thereof, on the recording of financial transactions, provides: Each government agency shall record its financial transactions and operationsconformably with generally accepted accounting principles and in accordance with pertinent laws and regulations.

Review and analysis of the accounts presented in the year-end financialstatements disclosed that some of the details of the accounts contained final negative and



AccountTotal Negative

Balances

Irregular and

Immaterial

BalancesReceivables – Disallowances/Charges 87,110.17 69.57Other Receivables 847.00 28.68Other Receivables – Advances toContractors 257,599.57

The details of the accounts presented above are shown in Annex B-1 of this report,which will also be made as reference of the City Accountant for reconciliation and

adjustment purposes.

We recommended that the Head, Accounting Department, cause the analysis

and reconciliation of the individual accounts, and require the necessary adjustments by

drawing the Journal Entry Voucher taking-up the appropriate adjusting entry/ies.

1.2 The account Cash – Disbursing Officers totaling P13,991,975.21 of the

P111,341,975.21 outstanding balance from all funds, which were drawn andgranted for specific purpose and time bounded activity were not only

liquidated on time but some were more than a year old and over and some

have become dormant in violation of Sec. 89 of PD 1445 and COA Circular

No. 97-002.

Sec. 89 of PD 1445 provides for the limitations on cash advances which statesthat no cash advance shall be given unless for a legally authorized specific purpose. A

cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served. No additional cash advance shall be allowed to any official or

employee unless the previous cash advance given to him is first settled or a proper



3. Official Travel — within sixty (60) days after return to the Philippines inthe case of foreign travel or within thirty (30) days after return to his

permanent official station in the case of local travel, as provided for in EO248 and COA Circular No. 96-004.

Failure of the AO to liquidate his cash advance within the prescribed period shallconstitute a valid cause for the withholding of his salary and the instruction of othersanctions as provided for under paragraphs 9.2 and 9.3 of COA Circular No. 97-002.

Contrary to the rules, regulations and guidelines as herein cited, the designated

Disbursing Officers failed to submit a report of their disbursements or return the cashadvances drawn that were not utilized.

The consolidated balance sheet showed a total of P111,341,975.21 in unliquidatedcash advances, account “Cash – Disbursing Officers” at year-end. Of this amount,P13,991,975.21 were thirty days to over one year outstanding while the amountP97,350,000.00 represented cash advances for confidential and intelligence funds for theyears 2009 to 2013 which were previously closed to expense accounts upon submission

of the liquidation report but was restored back to the receivable account in 2013 uponrecommendation for lack of a credit notice issued by the Chairman of the Commission onAudit as discussed under audit observation number 1.9 of this report.

It was gathered that among the reasons for the non-liquidation of the cashadvances of P13,991,975.21 was some of the accountable officials have either retired,separated and died, while those still in the service, were constantly reminded of theiraccountabilities. Details are presented under Annex B-2 of this report.

Noting that these cash advances were over one year, it is legally presumed that theaccountable officials may have misappropriated or malversed the said funds under their



cash advances for salaries and wages, honoraria, and other personnel benefits whichshould be lodged under Payroll Fund and Advances to Officers and Employees for cash

advances granted for travel and other time-bound undertaking.

In view of this, we recommended that Management take the following

courses of actions:

a) Compel all accountable officials to produce without delay their reports

of disbursements together with supporting documents and prepare the

required Liquidation Reports for submission to the accountingdepartment for its appropriate action;

b) Require the immediate refund of all unused cash advances;

c) Enforce the penal sanctions/appropriate proceedings to those who

cannot comply;

d) Henceforth, enforce strictly and consistently the provisions of Sec. 89 of PD 1445 and COA Circular No. 97-002 dated February, 1997 and limit

the granting of cash advances to avoid the recurrence of this kind of

infirmity;

e) For those who are already out of the service, management should

endeavour to exhaust all measures to collect from the estate of the

accountable officials for the return of the cash advances.

f) Cash advances intended for payroll should be taken under account

“Payroll Fund” pursuant to the NGAS Manual as updated while cash



supporting documents. The ALOBS setting up the fund at the beginning of the year shall be cancelled. Another ALOBS shall be prepared taking up the liquidation and recordedin the RAAO based on the actual expenses incurred. Unused cash shall be returned to theTreasurer who shall issue an Official Receipt to acknowledge the amount returned. Anew Cash Advance for Petty Cash Fund shall be set up in the ensuing year.

In addition, Sec. 62 of the same manual provides that accounting journal entriesare made in order to ensure that revenues and expenses are recorded in the period whenthey are earned or incurred following the revenue recognition and the matching principles.

Review and analysis of the year-end financial statements showed the accountPetty Cash Funds in the amount of P101,009.65, details of which are presented as Annex

B-3 of this report. By implication, the petty cash fund, if not used was not returned to thetreasurer to close the account, expenditures out of the fund was not liquidated and any balance thereof not returned to the treasurer/cashier thereby expenditures were not takenup for the year.

We recommended that the Local Chief Executive have the Petty Cash Fund

Custodians examined by its fiscal examiners immediately, have the unused balance

returned to the Treasurer/Cashier, require all expenditures for CY 2013 paid out of the

fund recorded as prior years adjustments in CY 2014 before setting up a Petty Cash

Fund for CY 2014 pursuant to Section 48 of the NGAS Manual. Thereafter, the

provisions provided in the NGAS Manual should be strictly adhered to.

The complete provisions of Sec. 48 of the NGAS Manual follows:



and its supporting documents. ALOBS shall be prepared for each replenishmentand recorded in the RAAO based on actual expenses incurred.

At the end of the year, the petty cash fund shall be fully liquidated by preparing a Report of Disbursement supported by the list/summary of PCVs, the

PCVs and its supporting documents. The ALOBS setting up the fund at thebeginning of the year shall be cancelled. Another ALOBS shall be prepared

taking up the liquidation and recorded in the RAAO based on the actual expenses

incurred. Unused cash shall be returned to the Treasurer who shall issue anOfficial Receipt to acknowledge the amount returned. A new Cash Advance for

Petty Cash Fund shall be set up in the ensuing year .”

1.4 The valuation and existence of account “Other Investments and Marketable

Securities” amounting to P6M is doubtful, monitoring of the

implementation of the program has since been overlooked from the time it

was released in CY 2001.

In November 2001, the City of Iligan entered into a Memorandum of Agreement(MOA) with the Land Bank of the Philippines (LBP) to launch and implement a partnership scheme that would enable cooperatives in the City Government of Iliganengage in livelihood projects known as “Share Financing Program for Cooperatives of

Iligan City”. The objective of the program was to combine and coordinate the efforts of

LBP and the LGU towards making available to cooperatives of the city financialassistance for income generating projects. Under the Program, seventy percent (70%orP17M) of the total project cost shall be provided by LBP out of its regular fund at its



amount of P9,689,541.65 was released and the amount of P10,091,588.78 (includinginterest) was outstanding and the whole amount was already written-off.

With this information, it can be deduced that the investment account of P6Mappearing in the balance sheets is no longer existing, the program deemed unsuccessful,thus, resulting in the overstatement of the asset and equity of the city government.

We recommended that the City Government, through the Accounting

Department, verify with LBP for any amount left from its share, retire the portionequivalent to the outstanding unpaid loans of the cooperatives and prepare a Journal

Entry Voucher to take up the appropriate adjustments in the city’s books of accounts

immediately. In addition, the City Accountant should coordinate with LBP in obtaining

the basis for its writing-off of its share from the financing program which could also be

part of the city’s documentation of the failed program.

1.5 The Construction in Progress (CIP) accounts totaling P1,009,286,975.06,

particularly public infrastructures for use by the general public were not

closed to the appropriate accounts upon completion of the project and were

not transferred to their respective registries and closed to the Government

Equity account at the end of the year.

The following provisions under Sec. 50 of the NGAS Manual apply as regards

treatment in the books of public infrastructures:

“ Public infrastructures are assets for use of the general public, such as roads,

b id t il l t t A R i t f P bli



A Summary of all Public Infrastructures (based on the different registries) shall be prepared annually and included in the Notes to Financial Statements.

Verification of the CIP accounts in the general and subsidiary ledger however,disclosed that the accounts have not been closed to appropriate Public Infrastructuresaccount and transferred to the Registry of Public Infrastructures upon completion, hence,no Registries were likewise made to record these assets. Details are presented as Annex B-5 of this report.

We have recommended that Management require the Head, Accounting

Department to immediately adjust the accounts by drawing the Journal Entry Voucher

to take up the entries and simultaneously maintain the appropriate Registries of Public

Infrastructures.

1.6 Accounts Payable which were more than five (5) years amounting to P

6,226,095.35 were not reverted to the surplus accounts while negative

balances in the said account amounting to P452,452.31 as well as negativebalances under accounts Due to BIR – P705,737.27, Due to GSIS –

P5,709,776.45, Due to Pag-ibig – P902.00, Due to Officers and Employees –

P95,344.64 and from Other Payables of P2,324,604.86 were not accordingly

adjusted.

Section 98 of PD 1445, provides: Reversion of unliquidated balances of accounts

payable. The Commission, upon notice to the head of agency concerned, may revert to

the unappropriated surplus of the general fund of the national government, anyunliquidated balance of accounts payable in the books of the national government, which

has been outstanding for two years or more and against which no actual claim,

administrative or judicial has been filed or which is not covered by perfected contracts



We recommended that management direct the Accounting Department to

extensively reconcile the details of the accounts in the balance sheet and thereafter

prepare the adjusting journal entries subject for the review of the auditor to ensure

conformity and correctness.

1.7 The City Government transferred the 20% development funds intended for

its development projects to the barangays for the latter to implement the

development projects which are supposed to be implemented by the city

government. Such transfer was also affirmed by the Sangguniang

Panlungsod under its Resolution No. 13-433 dated Jun 17, 2013.

Section 287 of the Local Government Code provides that each local governmentunit shall appropriate in its annual budget no less than twenty percent (20%) of its annualinternal revenue allotment for development projects.

Nowhere in the code, however, provided that the budget/funds for thedevelopment projects of the city government be transferred to the barangays. Neither did

we note of any prohibition on the transfer thereof, but the local code provision as well asin issuances by the DILG on the use of the said development funds, would show that the provisions of law intended that LGU concerned should utilize the said funds formeaningful and rooted development.

Transfer of the funds to the barangays were taken up in the books of CGI as areceivable account under “Due from LGU’s” and reversed only upon liquidation by the

concerned barangays.

The Annual Audit Report for CY 2012, reported that prior to CY 2012, the



We recommended that in order to ensure that the development projects are fully

undertaken as programmed, the City Government should take the following courses of

actions:

Undertake all biddings and awards of all the development projects

programmed for the remaining months of CY 2013. The beneficiary-

barangays shall supervise and monitor the implementation of the

projects;

Effect transfer of funds to the barangays in tranches based on the percentage of accomplishment of the project duly validated by the

inspectorate team of the city;

The City Accountant will continue to take up the transfer in the books of

the city as “Due from LGUs. The barangays shall record in their books

the asset/expense accounts contra “Due to LGUs” account until the

close of CY 2013 transactions.

Thereafter, the City Government should implement at its end all

barangay development projects allocated and funded from the 20%

Development Funds.

The above recommendations were duly noted by the City Mayor in its letter dated

September 26, 2013 and in another communication with the same subject datedDecember 26, 2013. On the other hand, the Barangay Chairmen of the City of Iliganaffected also wrote a letter of commitment in their letter dated September 11, 2013.Copies of these communications are presented as Annex F of this report



proper accounting is made. For local travels, liquidation shall be made within 30 daysafter return to official station.

We noted however, that employees responsible for the liquidation of their cashadvances failed to comply with the above cited laws and regulations. Thus, attributing tothe outstanding cash advances of P5,109,526.45 drawn from CY 2005 to date. Moreover,a detailed review of the purposes of cash advances disclosed that among the purposes oftravels were for benchmarking purposes, majority of which were not liquidated orreturned intact but through payroll deduction in small amounts. Noting this, we doubted

the veracity and legality of the travels.We are concerned that if left unchecked and/or tolerated, unliquidated cash

advances will constantly increase and eventually unmanageable thereby, overstating theassets and a corresponding understatement of the expense accounts while dissipatinggovernment funds through improper utilization.

We recommended that management:

Strictly comply the limitations on the grant of cash advances, that is, cash

advance for a legally authorized specific purpose; no additional cash

advances are granted if the previous cash advance is not liquidated or

reported on;

Monitor that liquidation of cash advances are promptly made, and impose

the penal sanctions provided by law for failure to render an account which

tantamount to neglect of duty. In this regard, unliquidated cash advances 60

days and over should be immediately reported on or returned;



transmittal letters for the liquidation of previous cash advances were

produced by the accounting department, no proof of receipt by the

Chairman or his/her representative was noted. Further, it was noted that the

requirements of COA Circular No. 92-385 and 2003-003 dated July 30, 2003

was not complied with.

COA Circular No. 2003-003 dated July 30, 2003 provides, among others thatsubsequent cash advances shall be granted only after the issuance of credit advice fromthe Chairman or the submission of liquidation vouchers/reports for the previous cashadvance to the COA Chairman. One copy of the transmittal letter, for the purpose, duly

received by the Chairman or his duly authorized representative, must be forwarded to theAccountant of the LGU and the Auditor concerned for reference.

Review of the released funds amounting to P24,000,000 for CY 2013 disclosedthat the requirements for proper liquidation of the funds and eventual closing to theexpense/government equity accounts through credit advices issued by the Chairman,Commission on Audit were not complied with. Further review of the accounts on theliquidation requirements revealed that all releases of the funds in previous years with the

coordination of the accounting department for the production/retrieval ofrecords/documents and subsidiary ledgers also disclosed the same deficiency and notedthat the accountability were closed to the expense accounts and consequently toGovernment Equity in the absence of the Credit Advices. The verification includedreleases from CY 2012 down to CY 2009 amounting to P75,600,000, the total amountincluding releases for CY 2013 sum up to P99,600,000.00, as shown in Annex B-8 ofthis report.

The following requirements as embodied under COA Circular No. 92-385 and2003-003 were not complied with, such as:



However, per its Resolution No. 13-542, the Sangguniang Panlungsod, in itsregular session held on July 23, 2013, moved to hold in abeyance the charging, processing, and/or disbursing of any amount against the appropriations for confidentialand intelligence funds in the Annual Budget and Supplemental Budget No. 1 for 2013 pending justification and compliance with the observations of the DBM.

Further, the Sanggunian, through the Finance Committee noted incoherence andexcesses in the budget allocation for the said expenses against the provisions of theDepartment of Interior and Local Government (DILG) MC No. 99-65 and cash advancesmade without the required credit advices of the prior cash advances.

Premises considered, we recommended the following courses of actions:

1.1 Restore the accountability account “Cash – Disbursing Officer” and closed the

account only upon receipt of a credit advice issued by the Office of the

Chairman, Commission on Audit;

1.2 Require the production of the credit advices to justify subsequent releases for

confidential and intelligence funds, absence of which should be the basis of the Accounting Department to restore back the receivable account and issue

demand letter for liquidation of the cash advances;

1.3 Comply the requirements of COA Circular 2003-003 particularly items 1-3 as

enumerated above, and furnish this office copy of the PNP certification on the

peace and order situation of Iligan and approval of the President of the

Philippines; and

1.4 Henceforth, comply strictly the required liquidation of cash advances for

confidential and intelligence activities within one (1) month from the date the



December, 2013 in violation of existing regulations, thus, reliability of Cash

in Bank balances presented in the balance sheet amounting to

P1,160,776,972.03 could not completely validated.

Section 74 of PD 1445 states that at the close of each month, depositories shallreport to the Agency Head (AH), in such form as he may direct, the condition of the

agency account standing in their books. The AH shall see to it that a reconciliation is

made between the balance shown in the reports and the balance found in the books of theagency.

The foregoing provision was likewise supplemented with Section 3.2 and 3.3 ofCOA Circular No. 96-011 dated October 2, 1996, which states that the local Accountant

shall, within ten (10) days from receipt of the Bank Statements (BS), reconcile the same

with the General Ledger (GL) and prepare the Bank Reconciliation Statements (BRS) in five (5) copies and the Accountant shall draw journal vouchers to record all valid

reconciling items that require adjustment and correction in the GL.

Contrary to the above requirements, the reconciliation statement lagged behind bysix months to one year as of June 2013, and three months behind as of December, 2013.By January 2014, the Accounting Department was not able to fully submit all therequired bank reconciliation statements, thus, verification of the banks accounts were notcompleted.

The City Government maintains thirty three bank accounts and was able to

reconcile twenty accounts or 60% as of February, 2014.

Failure to reconcile the bank accounts against the records on time will open the



and draw adjusting entries for valid reconciling items through the

preparation of a Journal Entry Voucher; and

6.

Coordinate with the City Treasurer and the City Accountant of the

possibility of trimming down the number of bank accounts by

closing/merging redundant accounts.

1.11 The Inventory Accounts shown in the Financial Statements consisting of

Office Supplies Inventory, Accountable Forms Inventory, Drugs and

Medicines Inventory, Medical, Dental and Laboratory Supplies Inventoryand Spare Parts Inventory still do not represent the actual value as of a given

period because submission of the results of the conduct of physical count and

valuation thereof to the Accounting Department was delayed/not

synchronized.

Section 51 and 114, Vol. I of the NGAS Policies provides that the purchase ofsupplies and materials for stock regardless of whether or not they are consumed within

the accounting period shall be recorded as assets using the Inventory Account followingthe Perpetual Inventory Method. All issuances of supplies shall be properly receiptedusing the prescribed forms (Sec. 123, Vol. 1 and Sec. 43, Vol. II of NGAS Manual). TheLocal Chief Executive (LCE) shall require periodic physical count of inventory items bytype every semester and reported in the Report of Physical Count of Inventories (RPCI)to be submitted to the Auditor concerned not later than July 31 and January 31 of eachyear for the first and second semesters, respectively. (Sec. 124, Vol I, NGAS Manual).

We noted however, that supplies and materials procured were directly taken up asexpense even if not yet issued or used; actual issuances/usages were not reportedanymore as required and any unused and unissued items were no longer recognized as



As regards the systems and procedures on the receipt, stocking and issuance ofinventories the CGSO encountered constraints due to the lack of a storage area andfacilities.

We have recommended that the LCE (Local Chief Executive):

a) Reiterate the conduct of physical inventories by all departments with

appropriate costing/valuation for submission every first day of July and

January of each year to the City General Services Office for consolidation and

submission to the Accounting Department;

b) Require the City Accountant to reconcile and adjust the records, compute the

value of actual supplies on hand at year-end based on the latest cost and

consolidated reports submitted by the CGSO and draw a Journal Entry Voucher

to take up the actual value of inventories in the books of accounts.

c) The proper procedure prescribed under the NGAS Manual provided from Sec.

112 to Sec. 125, Chapter 7, Vol. I, should be strictly observed, viz:

Preparation of Requisition by the General Services Officer for supplies andmaterials needed for the quarter based on the approved Annual Procurement

Program – Sec. 116;

Issuance of Purchase Order/Contract - Sec. 117;

Acceptance and Inspection of Purchases – Sec. 118;

Property Records to be maintained – Sec 119;



- For Property, plant and equipment – conducted annually and reported on the

Report on the Physical Count of Property, Plant and Equipment (RPCPPE) to be submitted to the Auditor not later than January 31 of each year.

Disposal of Supplies or Property – Sec. 125 – procedures shall be in accordancewith applicable rules and regulations on supply and property management in

local government units. The Waste Materials Report (WMR) and the Inventoryand Inspection Report of Unserviceable Property (IIRUP) shall be used.

d) The LCE should address the constraints on storage area of the GSO byincluding in its appropriation and prioritization of the construction of an

extension building for sufficient storage space of the GSO. The provision of

adequate storage area/space in the GSO should not be taken for granted as it

paves the proper observance of prescribed procedures in the internal control,

safekeeping and flows of supplies or property of the government.

1.12 The existing procedures in the collection of income due the City Governmentlack internal control checks and procedures. Apparently, such lack of

controls will result to greater possibility of under-collection and/or pilferages.

Sec. 2, P.D. 1445 provides that all resources of the government shall be managed,expended or utilized in accordance with law and regulation, and safeguarded against lossor wastage through illegal or improper disposition, with view to ensuring economy,efficiency and effectiveness in the operation of the government. The responsibility to take

care that such policy is faithfully adhered to rests directly with the chief or head of thegovernment agency concerned.



b) Probability that collectors will not issue cash tickets at all and will justreceive the cost of fees/tolls, thereby, the corresponding amount receivedmay not have been remitted;

c) There were no appropriate receptacles for cash collections maintained bythose having custody of funds;

d) Collectors/accountable officials did not keep personal monies separate anddistinct from public funds in their custody;

e) No surprise cash counts were conducted by the city government orinspections conducted to determine that the correct amount oftaxes/tolls/fees/rents were being collected, whether the amount oftaxes/tolls/fees/rents due was exactly receipted or issued withcorresponding cash tickets, and whether or not all collections weresafeguarded against loss and pilferages and completely turned-over to thecollecting officer.

f) In view of the absence of controls, collectors can easily make profit out of public money or otherwise apply the same to any use not authorized bylaw or ordinance (Sec. 312, RA 7160);

g) We also took note of the excess cash discovered in audit particularly thoseissuing cash tickets, indicating that cash were received without issuing thecorresponding cash tickets;

h) Furthermore, we deny the allegation from a collector that the excess cashin his/her possession/placed in designated receptacles during the cashexamination were his/her personal money;



Introduce additional systems and processes to address existing weak points in

collection such as but not limited to:

a.

Adoption of a regular monitoring system and/or closer supervision by a

responsible officer such as but not limited to the following tasks:

Inspection and review team to review that all possible sources of income

are consistently being tapped; that the right amount of tolls/billings and

corresponding receipts/cash tickets are issued by the designated

collectors; and that collections were properly made, receipted, remitted

and accounted for. The function of the EEDMO should not overlap with the function of the

Treasury. The EEDMO maybe task to inspect, review and monitor that

all sources of income are tapped and properly collected.

Adopt systems and procedures such that the issuance of cash tickets are

consistently made; possibility of non-issuance, recycling or misuse is

minimized if not eradicated;

Conduct surprise cash counts should be frequently made by authorized

examiners

b. Review/evaluate controls on cash receptacles/vault, that is, if under dual

control, one person holds the key and the other, the combination and that one

person would not have access to both.

At no instance should personal cash/belongings be placed inside

receptacles/vault;

Collecting Officers/other employees handling cash should be provided

with safe and that duplicate combination should be filed with the

authorized official. The combination should be changed whenever there



AO No. 278 was further reiterated under AO No. 70. It states among others, thefollowing orders of the office of the President:

1.1 The Internal Audit Service (IAS) shall be an integral part of theoffice/organization and shall assist the institution management in the effective

discharge of its responsibilities insofar as the same would not encroach on or be

adversarial with those of the auditors of the Commission on Audit. It shall function in accordance with the policies established by the provisions of Republic

Act No. 3456, as amended by Republic Act No. 4177, and shall perform staff

functions with primary responsibilities encompassing the examination and

evaluation of the adequacy and effectiveness of internal control and the quality of performance. The internal audit activities shall include the following:

1.1.1 Ascertaining the reliability and integrity of financial and operational

information and the means used to identify, measure, classify and report suchinformation;

1.1.2 Ascertaining the extent of compliance and reviewing the systems established

to ensure compliance with government policies, plans and procedures, laws andregulations which have impact on operations;

1.1.3 Ascertaining the extent to which the assets and other resources of the

institutions are accounted for and safeguarded from losses of all kinds;

1.1.4 Reviewing and evaluating the soundness, adequacy and application ofaccounting, financial and other operating controls and promoting the most

effective control at reasonable cost;

1.1.5 Reviewing operations or programs to ascertain whether or not results are



1.14 The Purchase Order entered into by the City Government with RT & P

Trading, Fortich St., Barangay 7, Malaybalay City, on November 11, 2013 in

the amount of P1,645,000 was highly irregular and disadvantageous to the

government due to the following reasons: 1) the deliverables were highly

perishable yet the supplier is from Malaybalay City with no known business

activity in the City of Iligan; 2) the foodstuff consisting of 23 items was priced

on a "LOT" basis; 3) the supplier was not able to deliver completely the

foodstuffs on delivery dates, thus, freshness of the delivered foodstuff was

not assured; undelivered items could not be calculated and the

implementation of the feeding program was hampered.

To implement the program “Early Childhood Care and Development (ECCD)/Supplementary Feeding Program” funded and implemented by the Departmentof Social Welfare and Development under Department Order No. 08 series of 2012, TheCity Government based on the Supplemental Feeding Program and Schedule crafted bythe City Social Welfare Development (CSWD) procured in bulk through public biddingsthe foodstuff to be used by the ECCD and to be distributed to the different day carecenters throughout the city.

Noting that the procurement made in bulk were highly perishable and the deliverywere landed in one area to be divided among the different day care centers, we conductedan inspection, through sampling of one scheduled delivery based on one (1) particularPurchase Order No. CB(B)-13-088 (ECCD) dated November 11, 2013 amounting toP1,645,000.00 to determine completeness, quality and proper handling of items, amongothers.

The sampled inspection disclosed that the supplier failed to deliver the followingitems:



delivery period, handling, storage and other concerns, considering the items were perishable. On the part of the ECCD, they found it tedious and cumbersome of having toattend to the delivery in bulk with landing and distribution area constraints. We also sawthe possibility of not being able to check the quality of the foodstuff due to the bulk of theitems and its corresponding quantity. We were also informed that short deliveries of thefoodstuffs were common and monitoring of the undelivered items were not meticulouslyconducted.

We recommended that the following remedial measures be implemented by the

City Mayor:

a) Require the ECCD to closely monitor the delivery of the foodstuff and to devise

means of facilitating the distribution and storage of the items to preserve its

freshness;

b) Report immediately all undelivered items, follow-up and document subsequent

delivery by preparing separate inspection and acceptance report;

c) Require the BAC to immediately blacklist the erring supplier and to impose the

equivalent liquidated damages;

d) Require the ECCD and the Bids and Awards Committee that goods to be

requisitioned/bidded out should be classified as to the line of business engaged

into by the prospective supplier (that is, supplier/trader of meat, fish, vegetable,

fruit s) and that ordering and pricing should not be specified “by lot”;

e) Require the Bids and Awards Committee to justify and indicate the legal basis

for bidding out multiple items on a lot basis when the items could be priced



It was also noted that inspection reports on particular projects/item of works weredone by the usual inspectorate team with no specialized technical background toadequately analyse and determine the correctness, viability and propriety of highlytechnical equipment used by the waterworks considering that the city government spendssums of money to serve the water needs of its populace which until now has not yet beenachieved to the maximum.

In view of this we recommended that:

Management should constitute an independent team (with technical expertise)to review all Program of Works and existing equipment of the waterworks so that only

those determined to be necessary will be undertaken in CY 2014. Along this line, the

Audit Team will seek the assistance of the COA Regional Office for the conduct of a

special audit of the waterworks project in view of its lack of special and technical skills.

2. Value for Money Audit

2.1 The CGI could save P219,500 per month or P2,634,000 a year if it relocate

the southbound terminal to the CGI owned northbound terminal which is

not fully utilized.

The city government is presently leasing a portion of land owned by a privatecompany for all south – bound public utility bus, vehicles and jeeps. One of the reasonsfor taking this step was the traffic clogged-up along the main city thoroughfares that will

be passed through by all south-bound vehicles.

The City Government also owned and operated a north-bound terminal. Study



3. Gender and Development (GAD)

The City Government through its designated focal point submitted theresults of its implementation of the Gender and Development Programs, Projects andActivities for calendar year 2013. The accomplishments and funding utilized were thosealready integrated and imbedded in the city’s programs, projects and activities.

4. Settlement of Suspensions, Disallowances and Charges

Though relatively insignificant, the City Government was able to recoverthe amount of P221,885.87 from disallowed payments which is equivalent to 5% of thetotal disallowance as of December 31, 2013.



PART III – STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

RECOMMENDATION

Of the 43 prior years’ audit recommendations, four were fullyimplemented, 31 were partially implemented and eight were not implemented. Thedetails of the status of implementation are presented in the succeeding pages. The statusof implementation of audit recommendations given for CY 2011 and CY 2010 were alsoincluded in view of some deficiencies noted during the said period which were addressed but eventually recurred in the current periods.

OBSERVATIONS AND

RECOMMENDATIONS REF.

MANAGEMENT

ACTION

Status of Implementation (Full,

Partial, On-going, or Non-

implementation)Reason for Partial/ Non-

implementation

A. Financial and Compliance Audit – CY 2012

1. Physical Count of

Property, Plant &

Equipment

The financial report of theCity government showed Property, Plant and

Equipment (PPE) accountswith book value of P

2,419,907,918.52. Theamount, consisting of movable properties issued to thevarious city department

Page23,

AARCY

2012



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

Recommendation:

i. Create an InventoryCommittee to conduct the physical count of the properties of the Citygovernment (All Funds)including acquired and

donated land. After which,the Committee should comeup with the Report on thePhysical Count of Property,Plant and Equipment(RPCPPE) by type to besubmitted to the City Mayor’s

office copy furnished the CityAuditor’s Office not later thanMay 31, 2013.

An Executive Orderwas issued by the

City Government forthe conduct of the

physical count ofPPEs including

Inventories. This wasfacilitated by theOfficer-In-Charge ofthe City GeneralServices Office(CGSO).

Partial As of reporting date, theCGSO has not come up

with a completeInventory Report. Thework was still in

progress and the activity

is hampered bymanpower constraints.

ii. To ensure the success ofthe Committee, alldepartment/office head should be required to conduct its ownPhysical Count of all the properties in their respectivedepartment/officeimmediately based on the

The conduct of physical inventory

count wascoordinated with the

concerned offices..

Partial As of reporting date, notall offices have come up

with the report forvalidation by the CGSO.



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

2. Casuals, JO andContractual workers

The city treasury fund was

depleted by P68M as of

September, 2012 for incurringwages of hired casuals, job

order workers and

contractual workersnumbering about 2,525, which

some of them are notnecessary and their assign jobcan be performed by a regular

employees or dispensed with

without loss of life or propertyor may not cause

embarrassment to the city government.

Page25,

AARCY

2012

Recommendation:

i. Fill up the vacant positions in the offices of thecity accountant, city treasurer,GTLMH, city health office,

city social welfare &development office andEEDMO.

The CityGovernment ofIligan (CGI) havealready initiated the

filling-up of vacant positions as early asMarch 2013.

Partial Compliance with therequirements ofregulatory bodies.



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

iii. Devise a policy andinternal control in the hiringof job orders such as but notlimited to requiring thedescription of duties andresponsibilities;recommendation of thedepartment/office head

availing the services of a joborder and approval of thelocal chief executive.

Although somestrategies have beendrawn out in thehiring of casuals andJob-Order personnel,

policy on the internalcontrol of hiring hasnot been submitted

for evaluation.

Partial

3. Fuel & Oil Inventory and

Consumption

Fuel and Oil Inventory in the

amount of P822,073.41

remained dormant for morethan three years. The

existence of the account is

doubtful as the city government has no fuel depot.

Page29,AARCY2012

Recommendation:



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

trip ticket with controlnumber or serial number;

internal control purposes.

and complied with.

iii. No motor vehicle should be allowed to depart from theoffice without the driver’s trip

ticket duly approved by the

department/office head or theAssistant department head, inthe absence of the former.Employees using the motorvehicle during office hoursshould support copy of theirlocator slip or pass-out slip

duly approved by thedepartment/office head or hisauthorized representativestating therein the purpose

and place to be visited in thedriver’s trip ticket and must

sign the driver/s trip ticket in

the authorized passenger(s);

The recommendationwas not consistentlyadopted.

Partial

iv. All requisition slip or Partial



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

consumed during the travel; be allocated.

vi. All motor vehicle shall be parked/ kept in the garage orat the office. The practice ofallowing the driver’s

particularly casual’s/job order

worker to bring the motor

vehicle in their residence isstrictly prohibited.Department/office head isreminded of theirresponsibility andaccountability for allgovernment properties;

Notimplemented

Constraints on parkingarea for all motorvehicles and a largemotorpool toaccommodate allvehicles owned by thecity government.

vii. Fetching ofofficial/employee fromresidence to office and viceversa including the usethereof of the members of thefamily of theofficial/employee and driver’s

even if they are riding withsuch official/ employee/driver is strictly prohibited;and



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

marked “For Official UseOnly”, while the necessity ofissuing more than one motor

vehicle to a city

department/office was notevaluated, and further, city

officials whosedepartment/office were

assigned with motor vehicle/s still collect transportationallowance, thus, defeating theregulations on the proper use

of government vehicles andentitlement of transportation

allowance.

AARCY2012

Recommendation:

i. The City General ServicesOffice shall see to it that allgovernment motor vehiclesincluding heavy equipment,transportation equipment and

motorcycles shall be plainlymarked “ FOR OFFICIALUSE ONLY” in accordance

No report ofcompliance wasreceived by thisoffice.

NotImplemented

Government vehiclesand motorcycles notmarked “For Official

Use Only” should be

duly accounted.



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MANAGEMENT

ACTION




implementation

iii. The City government todesignate area as garage tokeep their motor vehicle whennot in use, after office hours,during Saturdays, Sundays &holidays except when it is useon official purpose.

iv. The local financecommittee (LFC) shallevaluate the necessity of therequest of department/officehead for acquisition of newvehicle taking intoconsideration the function ofthe department/office. In case,the department/office hasmore than one (1) assign orissue vehicle the oldest oneshall be disposed inaccordance with the rules onthe matter before itrecommends to theCommittee on Appropriation.

NotImplemented

v. A Task Force Committeeshall be created to conductstudy or evaluate on the



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

of the project should conduct pre-briefing seminar on thereporting of the utilization ofthe fund and in theimplementation project beforefund releases.

funds

iii. Strictly follow the

guidelines stated under COACircular NO. 2007-01 datedOctober 25, 2007 on the grantof government funds to NGOs/POs.

iv. Reclassify the accounts ofother 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 barangaydevelopment projects in

violation of COA Circular No.94 013 d th i

Page38,AARCY2012



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implementation

for the submission of therequired report to liquidate thefund transfer.

iii. The City Accountant’s

representative and the barangay record keepersshould sit together quarterly

for the reconciliation of theiraccounts to identify thereconciling items and torecord immediately theadjustments concluded.

iv. The Office of the ABCPresident shall provide the SAthe status of the project’simplementation for the latterto validate the completion ofthe projects and determinewhether the IA implement the projects in accordance withthe MOA.

7. Barangay Development

Projects



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

Code (RA No. 7160) beforeentering contract specificallywhen he appropriationordinance describe the projectin the generic terms or the purchase of goods andservices not specified in theappropriation ordinance or

part of the regular personalservices and maintenance andother operating expenses.ii. Submit the approved SPResolution for entering MOAwith the individual barangayofficial of the recipient barangay.

iii. The city accountant to seeto it that contract or MOAentered into by the local chiefexecutive in behalf of the citygovernment is supported withSP Resolution approving the

contract or MOA.

8 G t f I t ti l



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implementation

additional allowance tonationally paid elementaryand secondary public schoolteachers assigned or stationedin the City; and

ii. Although it’s not

mandatory, the City Schools

Division Superintendent mayask or request from the citygovernment to provideadditional allowances toelementary and secondary public school teachersassigned or stationed in theCity.

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 &d l t id i f ll

Page44,AAR

CY2012



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ACTION




implementation

barangays, respectively, tosustain the nutrients of thefoodstuff.

ii. Payment to contractorshould be based on the actualdelivery or as a billed by thecontractor whichever is

appropriate.

B. Value for Money Audit

10. Kilos Asenso Support

(KAS) Fund- not

implemented

Infrastructure projects fundedunder the Kilos Asenso

Support (KAS) Fund in the

amount of P6,301,363.00received by the City

Government from the

Department of Budget &

Management remained intact since CY 2009 was not

implemented thus the desirei l b fit t

Page46,AARCY2012



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ACTION




implementation

iii. the City should strictlyabide with the DBM Circularin the utilization andimplementation of the projects programmed from the KASFund; andiv. in case the projects will

not be implemented duringthe year the CGI shall returnthe KAS fund to the nationalgovernment through the National Treasury.

11. Supplemental Feeding

Program- Nutritional

Status

The required five days a week

supplemental feeding program for 120 days was not

implemented thus the expected

output to improve thenutritional status of the target

children was not sustained.

Page

48,AARCY2012



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ACTION




implementation

five (5) days consumption.

iii. Day care workers shouldconduct constant dialoguewith the organized parentsinforming them the objectivesof the program and the fundrelease is limited to the

official list submitted to theFO.

iv. Account for the excesschildren from the official listsubmitted per day care centersand present with the citygovernment for providing theappropriate fund needed as alocal counterpart fund to the program.

CY 2011

A. Value for Money Audit

1. Non-Utilization of Loan



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

We recommend the followingremedial course of actions to prevent the recurrence ofsame in availing creditfinancing with the aGovernment FinancialInstitutions (GFIs) , viz:

i. The proponent(s) of the project(s) source from the proceeds of loan shouldadequately plan and program the

proposal project beforenegotiating loan with anyGovernment Financial Institution

(GFI’s). The proposed projectshould be included in the three(3), five (5) or ten (10) yearsdevelopment plan of the CityGovernment.ii. As soon as the GFI’s

approved the loan, the proponentshall coordinate with City

Engineer, the General ServiceOffice, the LFC and the BAC forthe conduct of pre procurement



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

2. Financial assistance forflood victims of Typhoon

Sendong

Financial assistance received

in checks and cash in the total

amount of

P363,541,553.22for the flood

victims of “TyphoonSendong” 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 disbursementswas recorded.

Page30,

AARCY

2011

We recommend the followingremedial measures to ensureaccountability, transparency,and enhance efficiency andeffectiveness in the proper

accounting of the fund,utilization must comply to

i t l diti l



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MANAGEMENT

ACTION




implementation

i. The City Treasurer to openan account either with theLBP and/or DBP specificallyfor calamity fund for“Typhoon Sendong” to ensure

transparency andaccountability;

The City Treasurer,maintained oneaccount each forTyphoon Sendong

Victim Funds withthe DBP and LBP,Iligan Branch.

ii. The City Treasurer isrequired to deposit futurefinancial assistance receivedand cause the transfer of saidfund deposited to the LBP andDBP, as validated by therespective head of the bank, to

said newly opened account tofast track monitoring,facilitate verification of theaccount balances and ensuresthat account debited/creditedto this account is exclusivelyfor the account of “Typhoon

Sendong” iii. The Sangguniang Panlungsod SP Resolution was This is the subject of an



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

program ofexpenditures was

insufficient.

iv. The implementer office(Task Force Committee) shallcoordinate with other nationalgovernment agencies (DSWD

& DPWH) to ensure properimplementation of theinfrastructure projects and seeto it that the utilizations anddisbursements of the calamityfund must comply withappropriate law, auditing rulesand regulations. Strictly

comply the DSWD shelterassistance guidelines andrender progress and terminalreport to the City Mayor, CityVice Mayor and CityCouncilors copy furnished theCity Auditor and the concernoffices;

The construction ofthe ShelterAssistance funded bythe DSWD was at a

snail pace due tolack of relocation

sites. The City

Government has nosufficient land toaccommodate themore than 5,000Typhoon Sendong

Victims entitled toShelter Assistance.

On-going

v. The City Mayor and uponrequest by higher authority or

The City SocialWelfare and



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ACTION




implementation

acquisition of the lot.3. Unserviceable Motor

vehicles and Motorcycles

The absence of physicalfacilities and appropriatemeasures to govern or to

regulate the proper use, carecustody, maintenance andreporting on the conditions ofthe government motorvehicles numbering 465 fleetsmay result in the loss or breakdown of the same,

inevitably results in loss ofman-hours and efficiency.

Page33AAR

CY2011

Recommendations:

We recommend the followingremedial measures to ensure

that government property areefficiently use, unserviceableproperty is properly



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ACTION




implementation

owns and maintains.

ii. The city government shallconstruct physical facilities toserve as one stop shop such as(1) storage of unserviceablegovernment property to prevent the loss, destructionand rapid deterioration ofsame,(2) motor poll or garageand (3) repair andmaintenance shop of motorvehicles.

Notimplemented

The CGI has not yetseen the significantimpact of the

suggestedrecommendation

iii. The CGSO to renew every

three (3) years the ARE/MRof all government property,conduct actual inspection onthe condition of same andinventory listing of missingaccessories;

Not

implemented

Except for the

ARE/MR signed bythe Outgoing CityAuditor and his andthose who haveretired from thegovernment service,all other AREs/MRs

was not renewedevery three (3)years The City



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ACTION




implementation

heavy equipment to monitorthe efficiency and cost ofmaintenance as a referenceguide in management decisionwhether to maintain or purchase a new unit. Alldepartment office/head withassigned office equipment

shall maintain the samerecord;

(CGSO) did notgive informationwhether they haveimplemented thesuggestedrecommendation.We still opine that

the suggestedrecommendationwill helpmanagement inassessing whetherold equipment will be maintained or

retired due to (high)cost of maintenanceand (reduce)efficiency andreplace with a newor brand new. Thus,maintaining ofrecord of all typesof equipment



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ACTION




implementation

Unserviceable Property(IIRUP), conduct actualinspection and list downmissing accessories, tow andreceive the motorvehicles/motorcycles/ otherequipments and deposit orstore to the designated

warehouse.

unserviceable propertywill be reported or brought to the attention

of the Audit TeamLeader when all itsvital parts are already

missing. Thesubmission of written

explanation from thedriver or thedepartment head

concern together withReturn Property Slipupon the said property

is determineunserviceable due to

wear and tear or beyond economicrepair to the CGSO is

necessary for the latterto prepare acontingency plan to

secure the propertyfrom wanton pilferage

of its vital parts.

vi. The CGSO shalli di l di h

While the CGSOh d

Partiallyi l



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ACTION




implementation

have not informedthe Audit TeamLeader whether ornot they havedisposed subjectunserviceable

property.

vii. The CGSO shalldemand from the end user oroperator the replacement orrefund of the missing motorvehicles/motorcyclesaccessories copy-furnishedthe office of the City Auditor;

and

Notimplemented

The CGSO failed tofurnish the Audit TeamLeader of any demandletter addressed to theconcern driver/ employeefor missing motorvehicles/motor cyclesaccessories.or equipmentdiscovered during turnover

of unserviceablegovernment motor vehiclesor motor cycles.

viii. Repairs of equipmentshall be done or undertaken by a competentmechanic/technician in order

to put them in operationalorder. Prohibit dismantling ofthe office equipment or other

The CGI hasemployedmechanic toundertake repair ofits motor vehiclesin case of minor

i j b

Partiallyimple-mented



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ACTION




implementation

B. Financial and ComplianceAudit

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.

Page36

AARCY

2011

Recommendations:

We recommend the followingremedial measures to fast tractthe liquidations/refunds of prior years’ cash advance



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ACTION




implementation

SDO/employee, request theCity Legal Office to instituteadministrative charge.

full refunds, partially returnedthe cash advanceand some othershave not refundyet.

ii. A separate notice ofliquidation/refund to formerSDO who have alreadyretired, resigned and separatedfrom the service but are stillliving for the immediatesettlement of his/her cash

advance. Copy furnished theCity Legal Office and theCommission on Audit. After,six (6) months, the notice wasreceived, yet no compliancethereof by the former SDO,request the City Legal Officeto initiate the filing of

appropriate charge under theRevised Penal Code in thecourt within the City of Iligan;

Same conditionas stated above

PartiallyImple-mented



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ACTION




implementation

the number of SDO’s to begranted with cash advanceand see to it that therequirement on the bonding ofthe SDO shall be strictlyadhered to and no cashadvance shall be grantedunless it is for public purpose

and availability of sufficientappropriation is provided andcash advance request tocircumvent the procurementlaw must not be allowed.

Accountant have been very cautiouswhenever a cashadvance be grantedto concern cityofficials/employeeson the requirementof bond and its

purpose. The Number of SDOshave been reduced.

Imple-mented

2. IDPP 1 & IDPP 2

The Power Plant (IDPP 1 & IDPP 2) which was finally

turnover by PSALM/NPC tothe City Government on

December 16, 2010 was not

recorded/booked in thelatter’s book of accounts,thus, the PPE and

Government Equity wasunderstated by

P350 101 622 53 the amount

Page38

AARCY

2011



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ACTION




implementation

through job orders will bemade available to PAPs pertaining to the generalwelfare and basic functionsand services beneficial to thecity constituents, viz

i. The City Mayor mayemployee emergency orcasual employees or laborers paid on a daily wage or pieceof work basis and hiredthrough job orders for local projects authorized by theSanggunian Panglunsod

pursuant to section 77, RA7160 (LGC) and see to it thatthese local projects areconsistent with Section 16 andwithin those identified inSection 17 of the LGC.

There are veryfew JOs hired forthe city projectclean and green program andthose identified

projects under

Section 17 of theLocalGovernmentCode.


ii. Limit the number of personnel hired on job orders by evaluating the mission andth t f th

There are someoffices withassigned JOs but




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MANAGEMENT

ACTION




implementation

offices. The wagesof these JOs are properly charged to

Personal Services.

iv. Concern Department/ OfficeHead to submit the PAPs and

justify the hiring of personnel thru job orders.

Same conditionas stated in itemiii above


Reiterated in theAAR for CY 2012.

v. Reiterated in the AAR forCY 2012.

Reiterated in theAAR for CY 2012

vi. In case the citygovernment needs personnelto maintain the orderliness,sanitation and hygiene,cleanliness, beautification and

good ambiance in the variousoffices, hire the services ofmanpower agencyspecializing for janitorialservices.

4. BAC Honorarium

Honoraria of the personnelinvolved in the procurement

processes was sourced from

Page48AAR



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ACTION




implementation

the audit deficiency:

i. Require the Head, BACSecretariat to prepare reporton the number of projects bidded, project completed or procurement contractsawarded to support claimed

for honoraria.

The requirement ofthis report asattachment to theclaim of BACHonoraria wassuperseded by Noticeof Award pursuant toCOA Circular re-documents to beattached for everydisbursements of

government funds.

PartiallyImplemented

ii. Limit the payment of

honoraria to the sourceidentified in Budget Circular No. 2007-3 dated November29, 2007 and to the savingsfrom the local budgetapproved by the SangguniangPanlungsod.

Not

implemented

The BAC honorariaare charged to thelumpsumappropriation forhonorium instead ofto the proceeds of thesale of bid documents.We request the CityAccountant Office tostrictly follow the

provision of BudgetCircular No. 2007-3dated November 29,



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ACTION




implementation

Secretariat for InfraProjects and

consultancy services.These will reduce theworkload of BACSecretariat memberswho are in the agency

procurement unit

(CGSO)

5. Procurement of

Consultancy Services

The procurement of

consultancy services is not inconformity with IRR, RA No.

9184 and the services procured do not partakes ofconsultancy as stated in

Philippine Bidding Documents Edition Ihenceforth, payment of

services rendered may be

considered unnecessaryexpenditures and/ or waste of

government resources.

Page50

AARCY

2011



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ACTION




implementation

i. Strictly follow the rulesand regulations on procurement of consultingservices per the revised IRRof RA No. 9184;

ii. Limit the contracting ofconsulting services to serviceswhich the city governmenthas no technical expertise orspecial skills.

6. PAPs identified to be

funded from the LDRRMFund (5 % Calamity Fund underGeneral Fund) not implemented

Programs, Activities, Projects(PAPs) approved by the

Sangguniang Panlungsod funded from the LDRRM

Fund amounting to P

67,485,600 to mitigatedisaster was not implementedwhile P28,922,000 for Quick

Response Fund (QRF) ofwhich P7,529,213.37was

disbursed for the relief and

Page51

AARCY

2011



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ACTION




implementation

LDDRM office with able,responsible and full time headand staff which shall performinherent functions in the disaster

preparedness but not limited tothe following essential functions,viz: a) DRRM officer within hislevel shall implement policies,approved plans and programs of

LDRRMC in accordance withthe policies and guidelines laiddown in this Act; b) Coordinatewith various stakeholders suchas NGOs, POs, CSOs,government officials/employeesin the proper execution andenhance efficiency and

effectiveness in theimplementation of the programs,activities projects (PAPs); c)Organize and conduct training,orientation, and knowledgemanagement activities ondisaster risk reduction andmanagement at the local level;and d) Maintain database of

human resources, equipment,directories, and location ofcritical infrastructures and their



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

of the Local PriceCoordination Council ofoverpricing/profiteering andhoarding of primecommodities, medicines and petroleum products; c) programming/reprogrammingof funds for the repair and

safety upgrading of publicinfrastructures and facilities;and d) granting of no interestloans by governmentfinancing or lendinginstitutions to the mostaffected section of the population through their

cooperative or peoplesorganizations.

iii) Ensure that all relatedPAPs to be funded from theLDRRMF will support thedisaster risk reduction andmanagement activities during

the pre-disaster preparedness programs and post disasteractivities Expedite the



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ACTION




implementation

7. Augmentation of fundPursuant to Section 336, RA

7160

The preparation, authorizationand execution of the annual budget for General Fund andSpecial Accounts Fund are

inefficient due to oftendeclaration of alleged savingsfor augmentation in theamount of P161,040,937.14 pursuant to Section 336, thelocal Code, in some instances,the exercise of the authority,contradicts Section 322 of the

same Code.

Recommendations:

We recommend the followingmeasures to rectify the auditdeficiencies observed, that theCity Mayor shall:

i. Direct alldepartment/office to submit



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ACTION




implementation

2060, series of 1992 by restatingthis authority as a general

provision of the Annual Budgetof each year to ensure thatunexpended balances ofappropriations will not beincluded as source of fund foraugmentation.

iii. Department/office head shallobserve prudence in the properallocation of their respectiveappropriations to ensureattaining the objectives of their

programs, projects, activities(PPAs).

8. Gender and Development(GAD)

The City Government failed toidentify the

programs/projects/activities

in the Annual Budgets for the

implementation of Gender and

Development that requires atleast five percent ( 5% ) of the

total appropriations or in the

Page56

AARCY

2011



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ACTION




implementation

ensure that GAD PPAs areintegrated in the local planning

process.

ii. The City Budget Officershall allocate funds for theimplementation of the GAD Planto at least 5% of the totalappropriations earmarks in the

annual and supplemental budgetsfor all funds. iii. The implementer officeshall see to it that fundsallocated for the GAD projects shall be spent solelyfor that purpose and submit progress accomplishment

report and year end report tothe Focal Person designated.

iv. The Focal person shalloversee and monitor the proper implementation of theGAD projects includingmeasures to improve thesystems and operations of theGAD plan and to see to it theGAD l t d



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ACTION




implementation

vi. The present procedures ofallocating fund for GAD PPAs tothe various offices of the CityGovernment under other MOOEshall be discouraged and bedisapproved by the SanggunianPanlungsod.

9. Annual Procurement

Plan (APP)

The BAC Secretariat failed toconsolidate thedepartment/office Procurement

Project Management Plan(PPMP) into Annual

Procurement Plan (APP) as

required in Section 7.3, Revised IRR of RA 9184 thus, procurement activities may ends

to shopping instead of public

bidding therefore,competitiveness and

transparency in procurement

transactions are most likely

not attained.Recommendations:



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ACTION




implementation

transactions are most likely notattained.

Recommendations:

We recommend the followingremedial measures to rectifythe audit deficiencies

observed, viz:

i. The BAC shallconsolidate all the suppliesrequirements for the common-use supplies of the variousoffices of the Citygovernment and directly

procure same to the PS-DBMon a quarterly basis.

ii. To fast track theconsolidation works of theBAC, each department/officehead shall provide copy oftheir annual procurement

projects management plan(PPMP) on September ofevery year to the BAC



OBSERVATIONS AND


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ACTION




implementation

monitoring tool for observerssuch as Civil SocietyOrganizations and COA.

11. Procurement of official

uniform of the City

Government Officials/

Employees

The Committee on Uniformscreated under Executive Orderof the City Mayor failed toexercise the mandates taskedwith them thus, the objectivesto conceptualize new designsand color and formulate new

guidelines in the wearing ofthe prescribed uniform toconform with CSC dress codeguidelines was not achieved.

Page63

AARCY

2011

Recommendations:

We recommend the following

remedial measures to rectifythe observations made, viz:



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

approved appropriation forclothing/uniform allowance;

iii. in case, the costs of clothand labor is less than the amountof P4,000 per employee, thedifference must be paid to theconcerns employee through the

payroll system; and iv. see to it that the cloth,design and color must be presented to the stakeholdersfor comment(s) and /orapproval before reaching afinal decision on the procurement of the prescribed

office uniforms.

12. Unsettled Suspensions,

Disallowances and Charges

City government compliance

with audit suspensions,disallowances and charges

made during the year were18.69 % or P265,435.27 outof P1,420,516.32 thereby,

Page65

AARCY

2011



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ACTION




implementation

disallowances and charges;

ii) ensure that all employeeswho are retiring ortransferring to other agenciesshall first settle thedisallowances and charges forwhich they are liable.

For the Year Ended December 31, 2010 (prior year for audit recommendations not fully

implemented)

Financial and Compliance Audit

1. Cash in Bank-Local

Currency Cash

Account

Confirmation of cashaccounts balances per books

with the banks showeddisagreement between the twoindependent records of

P44,581,089.40, the agency

books has a balance of P350,878,203.43, while the

bank accounts shows

Page31,

AARCY

2010



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ACTION




implementation

1. Record the adjustmentsnoted in the bankreconciliation statementsmade.

Notimplemented

2. Exhaust all possiblemeans to trace and reconcilethe remaining differences

found between the books and banks balances.

SP Resolution No. 11-418-Aresolution

directing theHead, CityAccountant’sOffice to prepare a BankReconciliationStatement

Notimplemented

3. Prepare monthly BankReconciliation Statementsregularly and ensure thetimely recording ofadjustments and/orcorrections for fair presentation of the cashaccounts in the financialstatements.

Notimplemented

No properaccounting personnel beingassigned to do theBank ReconciliationStatement.

4. Assign one accounting Not



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

the accounts as some of these

officers and employees haveretired and resigned or

transferred to other offices.

These also understated therelated expenses account and

overstated the reportedincome accounts and trust

liability.

Recommendation:

The City Accountant should be guided with COA Circular No. 96-004, implementingSection 16 of Executive Order

No. 248 and COA Circular No. 97-002, amended rulesand regulations on thegranting, utilization andliquidation of cash advancesand Section 89 of PD. 1445 by adopting strictly thefollowing:


Compliance with therules on granting,utilization andliquidation of cash

advances cannot befully implementeddue to some personalrequest from theconcern employeeswith unliquidatedcash advance

Only permanentlyappointed officials shall be

PartiallyImple-

Elected official wasallowed to draw



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

travel cash advance. Delete the name of the official oremployee from the subsequent payrolls until such time thatthe travel cash advance has been fully liquidated, if theofficial or employeeconcerned fails to liquidate

the cash advance within the prescribed period. For petty cash fund

(PCF) and time boundundertaking (special cashadvance) to enjoin theofficial and employees toliquidate within 20 days after

the end of the year or as soonas the purpose for which itwas given has been served.When a cash advance is nolonger needed or has not beenused for a period of two (2)months, it must be returned orrefunded immediately to the

collecting officer. Officialand employee drawing cashd d thi t


PCF are notmaintained underthe imprest system.



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ACTION




implementation

committee in the SangguniangPanlungsod for adoption ofappropriate measures to protect the interest of the citygovernment.

2. Direct the CityAccountant’s representative to

verify the accounts of NSOand Brima construction, if thisan act of human errorreclassify to the appropriateaccount.

Not Imple-mented

We doubt whetherthey have verified

the accounts.

3. To safeguard fundtransferred to NGOs/POs, the

accountant and the focal person in the implementationof the project should conduct pre-briefing seminar on thereporting of the utilization ofthe fund and in theimplementation project beforefund releases.

Not Imple-

mented

No pre-briefing

meeting conducted

prior to the releaseof fund.

5. Due from Other



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MANAGEMENT

ACTION




implementation

The City Accountant’s

representative shouldreconcile the reciprocalaccounts and effectadjustment in the respective books of accounts for fair presentation in the financial

statements.

mented done.

6. Accumulated Depreciation/

Depreciation Expense

The carrying amount of the

property, plant and equipment

(PPE) are overstated becausethe depreciation 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 ofexpenses and the related

Page42,

AARCY

2010



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ACTION




implementation

total amount of

P24,911,356.32 were still notrecorded as agency assets

and/or as public

infrastructure projectscontrary to the provisions of

Section 50, Volume I of the Manual on the New

Government AccountingSystem, thus, understating theappropriate PPE accountsand expenses for the

depreciation that could havealready been allocated.

CY

2010

Recommendations:

The City Accountant’s

representative to record thecompleted projects either asagency assets and/or publicinfrastructure projects, thelatter should be transferred tothe Registry of Public

Infrastructure.


8. Loans Payable – Long-



OBSERVATIONS AND


MANAGEMENT

ACTION




implementation

non- current liability inconformity with PAS No. 1 toensure that both accounts arefairly present in the financialstatements.



Annex A-1.1City Government of Iligan

BALANCE SHEET

GENERAL FUNDAs of December 31, 2013(With Comparative Figures for CY 2012)

2013 2012

ASSETS

CURRENT ASSETSCASH

Cash on HandCash in Vault

Cash -Disbursing Officers 107,549,903.11 9,184,598.28Petty Cash Fund 101,009.65 130,371.05

Cash in Banks-Local Currency

Cash in Banks-LCCA 734,078,880.25 761,200,063.49Cash in Banks-LCTD 189,773,838.19 187,743,971.39Total Cash 1,031,503,631.20 958,259,004.21

RECEIVABLESReceivable Accounts

Due from Officers and Employees 4,538,680.05 6,911,814.24Loans Receivables - Others 7,672,686.14 7,918,226.61Real Property Tax Receivable 326,412,168.09 407,679,602.52

Inter-Agency ReceivablesDue from NGAs 207,000.00 6,397,110.19D f GOCC 1 285 000 00 1 285 000 00




BALANCE SHEET


2013 2012

Other Supplies Inventory 108,863.00 293,148.00Spare Parts Inventory 1,925,500.00 2,066,500.00

Total Inventories 5,156,334.30 4,780,620.07PREPAYMENTSPrepaid Insurance 1,146,581.79Advances to Contractors 10,910,803.35 31,730,517.71Total Prepayments 10,910,803.35 32,877,099.50

OTHER CURRENT ASSETSGuaranty Deposits 80,000.00 80,000.00Total Other Current Assets 80,000.00 80,000.00

TOTAL CURRENT ASSETS 1,422,251,707.62 1,518,312,577.14INVESTMENTSOther Investments and MarketableSecurities 6,000,000.00 6,000,000.00

TOTAL INVESTMENTS 6,000,000.00 6,000,000.00

PROPERTY, PLANT AND EQUIPMENT (Net ofDepreciation)

LAND AND LAND IMPROVEMENTSLand 344,781,869.19 329,061,409.28Land Improvements 5,907,979.61 5,907,979.61El t ifi ti P d E




BALANCE SHEET


2013 2012

IT Equipment and Software 46,907,643.35 44,531,361.76Library Books 2,773,096.16 2,820,586.85

Total Office Equipment, Furniture andFixtures 104,753,680.09 98,705,802.23

MACHINERIES AND EQUIPMENTMachineries 139,876.55 139,876.55Agricultural, Fishery and ForestryEquipment 876,220.35 467,502.13Communication Equipment 6,924,773.96 6,576,874.23Construction and Heavy Equipment 136,118,753.86 107,138,544.62

Hospital Equipment 30,227,690.10 5,416,950.11Firefighting Equip. and Accessories 15,724,880.75 2,824,846.76Medical, Dental and LaboratoryEquipment 6,618,705.78 6,655,060.27Military and Police Equipment 1,684,396.44 1,116,151.94Sports Equipment 1,032,142.48 1,033,761.44Technical and Scientific Equip. 6,758,642.43 6,783,554.43Other Machineries and Equipment 1,085,252.86 1,092,429.70

Total Machineries and Equipment 207,191,335.56 139,245,552.18

TRANSPORTATION EQUIPMENT




BALANCE SHEET


2013 2012

Due to Other Funds 3,503,435.58 33,053,722.00Other Liability Accounts

Guaranty Deposits Payable 20,828,773.52 16,534,859.73Performance/Bidders/Bail BondsPayable 666,575.65 666,575.65Other Payables 15,507,031.07 14,439,920.17

Total Current Liabilities 199,694,073.04 175,815,516.79LONG-TERM LIABILITIES

Mortgage/Bonds/Loans PayableLoans Payable - Domestic 403,446,824.56 677,866,248.46

Total Long-Term Liabilites 403,446,824.56 677,866,248.46TOTAL LIABILITIES 603,140,897.60 853,681,765.25

DEFERRED CREDITSDeferred Real Property Tax Income 334,651,742.59 415,919,177.02Other Deferred Credits 441,584.05 441,584.05Total Deferred Credits 335,093,326.64 416,360,761.07

EQUITYGovernment Equity - Beg. 2,483,489,369.90 2,381,861,608.37Add: Retained Operating Surplus

Current Operations 494,534,556.95 129,671,975.43Prior Year Adjustments 76,034,673.18 (12,659,050.76)

Less: Transfer to Registry



Annex A-1.2

City Government of IliganSTATEMENT OF INCOME AND EXPENSES

GENERAL FUNDFor the Year Ended December 31, 2013


CY 2013 CY 2012

TAX REVENUE

Local TaxesAmusement Tax 4,528,342.71 3,892,016.84

Business Tax 110,069,505.96 88,055,660.20

Community Tax 4,066,496.30 4,162,610.70

Franchise Tax 8,219,567.64 9,554,175.54

Occupation Tax 1,580,896.00 1,329,374.17

Printing and Publication Tax 60.00

Property Transfer Tax 7,923,272.15 4,671,780.03Real Property Tax 59,796,112.02 51,262,870.40

Less: Discount on Real Property Tax

Special Education Tax

Less: Discount on Special Education Tax

Tax on Delivery Trucks and Vans 1,202,025.00 1,294,690.00

Tax on Sand, Gravel and Other Quarry Products 4,482,557.60 2,750,541.20

Other Local Taxes [plus(+) Professional Tax] 1,926,484.53 2,184,577.68

Fines and Penalties-Local Taxes 2,015,350.96 2,048,262.00



Annex A-1.2




CY 2013 CY 2012

Clearance and Certification Fees 5,955,710.98 3,722,867.10

Garbage Fees 79,730.00Inspection Fees 8,182,936.37 6,319,714.44

Processing Fees 3,320.00

Other Service Income 6,156,113.23 6,065,485.50

Fines and Penalties-Service Income 125.00 55.00

Total Service Income 20,377,935.58 16,108,122.04

Business Income

Hospital Fees 30,507,674.89 23,225,797.81

Income from Cemetery Operations 1,133,956.00 1,368,824.00

Income from Markets 11,243,077.11 12,157,260.03

Income from Slaughterhouse 1,615,338.93 1,723,840.68

Income from Transportation System 11,438,198.32 11,312,284.14

Income from Waterworks System 54,671,415.11 48,460,172.44

Rent Income 2,307,688.20 88,000.00Sales Revenue 23,780.74 25,067.00

Fines and Penalties Business Income 526 484 14 388 232 54



Annex A-1.2




CY 2013 CY 2012

Salaries and Wages

Salaries and Wages - Regular 266,336,877.95 241,778,905.78Salaries and Wages - Part-time 201,843.00

Salaries and Wages - Casual 92,264,605.20 88,042,963.15

Salaries and Wages - Contractual 72,321.16

Other Compensation

Personal Economic Relief Allowance(PERA) 26,456,998.59 26,897,987.90

Additional Compensation(ADCOM) 182,000.00

Representation Allowance(RA) 4,376,697.83 3,379,489.29Transportation Allowance(TA) 3,658,905.63 2,830,701.54

Clothing/Uniform Allowance 6,993,800.00 5,558,970.68

Subsistence, Laundry and Quarter Allowance 3,897,902.24 3,724,907.12

Productivity Incentive Allowance 13,004,000.00 18,365,493.43

Other Bonuses and Allowances 415,200.00 60,000.00

Honoraria 2,629,855.60 2,581,876.81

Hazard Pay 26,677.10 39,497.08

Longevity Pay 999,500.00 950,000.00



Annex A-1.2




CY 2013 CY 2012

Advertising Expense 666,728.00 1,518,420.40

Printing and Binding Expenses 56,000.00Rent Expenses 13,566,845.13 6,458,487.80

Representation Expenses 963,858.20 1,284,371.05

Transportation and Delivery Expenses 20,000.00 1,000.00

Subscriptions Expenses 45,955.00 67,266.00

Survey Expenses 348,817.36 346,081.07

Professional Services

Consultancy Services 671,000.00 1,809,505.58General Services 438,436.32 23,333,575.19

Janitorial Services 14,716,403.06

Security Services 1,867,931.10

Other Professional Services

Repairs and Maintenance

Land Improvements

Rep.& Maintenance- Elect., Power & Energy Structures 1,566,969.61 2,902,385.72

Buildings



Annex A-1.2




CY 2013 CY 2012

Repairs and Maintenance - Watercrafts 1,610.00

Repairs and Maintenance - Other Transportation Equip.Other Property, Plant and Equipment

Repairs and Maintenance - Other PPE 143,500.00 85,000.00

Public Infrastructures

Repairs and Maint. - Roads, Highways and Bridges 3,839,491.72 1,816,926.28

Repairs and Maint.-Plazas, Parks and Monuments 2,137,891.96 293,484.00

Repairs and Maint.-Artesian Wells, Reservoirs,

Pumping Stations and Conduits 1,243,414.18 109,070.00Repairs and Maintenance - Waterways,

Aqueducts, Seawalls, River/Walls and Others

Repairs and Maint.- Irrigation, Canals and Laterals

Repairs and Maintenance - Other Public Infrastructures

Confidential, Intelligence, Extraordinary and Misc. Exp.

Confidential Expenses 1,500,000.00 9,000,000.00

Intelligence Expenses 1,500,000.00 9,000,000.00

Extraordinary Expenses 1,070,940.00 1,144,002.00



Annex A-1.2




CY 2013 CY 2012

Office Equipment - Furniture and Fixtures

Depreciation - Office Equipment 516,541.12 1,011,604.10Depreciation - Furniture’s and Fixtures 334,993.33 564,296.91

Depreciation - IT Equipment 1,902,836.51 4,267,666.74

Depreciation - Library Books 47,490.69 27,973.44

Machineries and Equipment

Depreciation - Machineries

Depreciation - Agricultural, Fishery & Forestry Equip 61,281.78 127,780.56

Depreciation - Communication Equipment 161,521.27 340,445.55Depreciation – Const. and Heavy Equip. 1,285,790.76 1,182,708.32

Depreciation - Firefighting Equip. and Accessories 684,795.01 125,397.26

Depreciation - Hospital Equipment 1,179,260.01 687,363.03

Depreciation - Medical, Dental and Lab. Equip. 263,234.49 471,282.18

Depreciation - Military, and Police Equip. 50,755.50 48,606.00

Depreciation - Sports Equipment 30,063.96 62,431.67

Depreciation - Technical and Scientific Equip. 24,912.00 54,864.00

Depreciation - Other Machineries and Equip. 7,176.84 9,213.88



Annex A-1.2




CY 2013 CY 2012

Total 45,532,482.78 42,002,453.25

Income before Subsidies, Donations and ExtraordinaryItems 553,444,795.05 156,262,635.61

Add: Subsidy from Other Funds 67,950,000.00 44,500,000.00

Total 621,394,795.05 200,762,635.61

Less: Subsidy to National Government Agencies

Subsidy to Local Government Units 28,439,389.62 6,352,964.00

Subsidy to NGOs/Pos 5,400,069.93 7,971,720.33

Subsidy to Other Funds 74,905,500.00 44,500,000.00Donations 18,115,278.55 12,265,975.85

Total 126,860,238.10 71,090,660.18

Income before Extraordinary Items 494,534,556.95 129,671,975.43

Add(Less): Extraordinary Items:

Gain/Loss on Sale of Disposed Assets

NET INCOME 494,534,556.95 129,671,975.43

A A 1 3




STATEMENT OF CASH FLOWS

GENERAL FUNDFor the Year Ended December 31, 2013(with Comparative figures for CY 2012)

2013 2012

Cash Flows From Operating ActivitiesCash Inflows

Share from Internal Revenue Allotment 782,162,233.00 732,393,920.00Collection from Taxpayers 364,345,551.32 308,503,281.93Receipts from sale of goods and services 16,216,793.69 14,487,520.38Interest Income 3,651,817.26 4,769,948.02Dividend Income 0.00 0.00Other Receipts 622,389,430.63 118,661,184.13

Total Cash Inflows 1,788,765,825.90 1,178,815,854.46Cash Outflows

Payment to -Suppliers/Creditors 336,136,830.43 222,200,960.18Employees 676,165,430.53 658,601,872.93

Interest Expenses 43,108,514.38 40,797,838.91Other Disbursements 293,746,744.55 402,612,035.05

Total Cash Outflows 1,349,157,519.89 1,324,212,707.07Cash Provided by (Used In) 439,608,306.01 (145,396,852.61)

Cash Flows From Investing ActivitiesCash InflowsSale of Property, Plant and Equipment 0.00 0.00

A A 1 3





GENERAL FUNDFor the Year Ended December 31, 2013(with Comparative figures for CY 2012)

2013 2012

Cash OutflowsRetirement Redemption of Debt Securities 0.00 0.00

Payment of Loan Amortization 283,462,678.42 114,568,167.93Total Cash Outflows 283,462,678.42 114,568,167.93

Cash Provided by (Used In) (274,419,423.90) 340,697,483.05 Net Cash Provided By (Used In) 73,244,626.99 164,987,384.59Cash at the Beginning of the Period 958,259,004.21 793,271,619.62Cash at the End of the Period 1,031,503,631.20 958,259,004.21

Annex A-2 1



Annex A-2.1CITY OF ILIGAN

Balance Sheet

Special Education Fund As of December 31, 2013


2013 2012

ASSETS

CURRENT ASSETS

CASH

Cash on Hand

Cash - Disbursing Officers 149,909.92 1,461,119.62

Cash in Banks - Local Currency

Cash in Bank - Local Currency , Current Account 41,143,235.28 21,737,027.21

Cash in Bank - Local Currency, Time Deposits 23,555,297.48 23,022,967.86

Total Cash 64,848,442.68 46,221,114.69

RECEIVABLES

Receivable Accounts

Due from Officers and Employees 282,989.73 268,901.39

Special Education Tax Receivable 278,297,759.57 350,144,763.22

Intra - Agency Receivables

Due from Other Funds

Due from NGOs/Pos 2,100,000.00 2,100,000.00

Due from Other Funds 1,398.00

Other Receivables

Receivables - Disallowances/Charges 41,763.18 41,763.18

Other Receivables 1.26Total Receivables 280,723,910.48 352,555,429.05

Annex A-2 1



Annex A 2.1CITY OF ILIGAN

Balance Sheet



2013 2012

Furniture and Fixtures 8,553,770.72 8,563,435.07

IT Equipment and Software 362,160.26 269,340.64

Library Books 10,681,761.42 10,863,015.68Total Office Equipment, Furniture and Fixtures 20,943,123.95 21,010,372.24

MACHINERIES AND EQUIPMENT

Machineries 189,208.84 189,208.84

Communication Equipment 25,857.29 25,857.29

Firefighting Equipment and Accessories 10,317.85 10,317.85

Sports Equipment 235,642.50 235,642.50

Technical and Scientific Equipment 300,298.12 300,298.12

Total Machineries and Equipment 761,324.60 761,324.60


Motor Vehicles 1,104,519.97 1,104,519.97

Total Transportation 1,104,519.97 1,104,519.97

OTHER PROPERTY, PLANT AND EQUIPMENT

Other Property, Plant and Equipment 341,000.23 341,000.23

Total Other Property, Plant and Equipment 341,000.23 341,000.23

PUBLIC INFRASTRUCTURES

Artesian Wells, Reservoirs, Pumping Stations andConduits 384,335.11 384,335.11

Other Public Infrastructures 180.00 180.00

Annex A-2 1



Annex A 2.1CITY OF ILIGAN

Balance Sheet



2013 2012

Due to BIR 1,308,914.68 1,283,568.48

Due to GSIS 281,113.57 272,242.42

Due to PAG-IBIG 147,377.30 122,921.15Due to PHILHEALTH 1,354,996.87 1,489,546.87

Intra - Agency Payables

Due to Other Funds 235,610.91 207,458.51

Other Liability Accounts

Guaranty Deposits Payable 263,586.90 914,579.87

Other Payables 201,503.57 232,943.84

Total Current Liabilities 7,700,647.09 8,282,378.75

TOTAL LIABILITIES 7,700,647.09 8,282,378.75

DEERRED CREDITS

Deferred Special Education Tax Income 278,297,329.47 350,144,333.12

Other Deferred Credits 7,614.00 7,614.00

Total Deferred Credits 278,304,943.47 350,151,947.12

EQUITY

Government Equity, Beg. 210,645,849.59 200,982,074.59

Add :

Retained Operating Surplus 24,042,749.52 9,083,057.80

Annex A-2.2



Annex A 2.2

City Government of Iligan

STATEMENT OF INCOME AND EXPENSES


(With Comparative Figures For CY 2012)

2013 2012

Income

General Income AccountsOther Income 0.09

Interest Income 644,985.06 663,959.09

Tax Revenue

Local Taxes

Special Education Tax 71,849,909.95 58,613,872.10

Fines and Penalties - Local Taxes 3,076,152.28 7,605,520.84

Total Local Taxes 75,571,047.38 66,883,352.03

Gross Income

Expenses

Personal Services

Salaries and Wages

Salaries and Wages - Regular 27,783,557.60 29,581,733.12

Salaries and Wages - Casual 48,877.56Other Compensation

Personnel Economic Relief Allowance (PERA) 3,428,545.64 3,839,285.36

Clothing/Uniform Allowance 790,000.00 801,600.00Subsistence, Laundry and Quarter Allowance 92,318.18 94,977.16

P d ti it I ti All 260 000 00

Annex A-2.2



Annex A 2.2

City Government of Iligan

STATEMENT OF INCOME AND EXPENSES


(With Comparative Figures For CY 2012)

2013 2012

Office Supplies Expenses 77,794.00 166,861.89

Gasoline, Oil and Lubricants Expenses 47,171.50 162,902.22

Textbooks and Instructional Materials ExpensesOther Supplies Expenses 80,206.00

Utility ExpensesWater ExpensesElectricity Expenses 1,082,854.07 1,062,502.27

Communication ExpensesTelephone Expenses-Landline

Repair and Maintenance

Buildings School Buildings 994,579.00 898,834.00

Transportation EquipmentMotor Vehicles 8,565.00

Subsidy to NGOs/Pos 350,000.00

Subsidies and DonationsDonations 247,000.00

Depreciation -Electrification, Power and Energy

StructureOffice BuildingsS h l B ildi

Annex A-2.3



Annex A 2.3

CITY OF ILIGAN


Special Education FundFor the Year Ended December 31, 2013

2013 2012

Cash Flows from Operating Activities

Cash Inflows

Share from Internal Revenue Allotment - -

Collection from Taxpayers 74,933,746.43 66,455,408.12

Receipts from Sale of goods and services - -

Interest Income 644,985.06 663,959.09

Dividend Income - -

Other Receipts 161,363.81 286,396.47

Total Cash Inflows 75,740,095.30 67,405,763.68

Cash Outflows

Payments to -

Suppliers/Creditors 7,225,742.83 32,561,774.49

Employees 49,636,472.57 44,129,915.24

interest Expenses - -

Other Disbursements 114,578.52 509,499.46Total Cash Outflows 56,976,793.92 77,201,189.19

Cash Provided by (Used in) 18,763,301.38 (9,795,425.51)

Cash Flows from Investing Activities

Cash Inflows

Sale of Property, Plant & Equipment - -

Sale of Debt Securities of Other Entities - -

Collection of Principal on Loans to Other Entities - -

Total Cash Inflows - -

Cash OutflowsInfrastructures 135,973.39 1,432,437.00

Purchase of Debt Securities of Other Entities - -

Annex A-3.1



Annex A 3.1

CITY OF ILIGAN

BALANCE SHEET

Trust Fund As of December 31, 2013


2013 2012

ASSET

CURRENT ASSETS

CASH

Cash on Hand - -

Cash in Vault - -

Cash -Disbursing Officers 3,642,162.18 3,664,276.38

Petty Cash

Payroll Fund - -

Cash in Banks-Local Currency

Cash in Bank-Current Account 385,554,856.50 401,129,679.19

Cash in Bank-Time Deposits 16,029,556.49 15,868,411.14

Total Cash 405,226,575.17 420,662,366.71

RECEIVABLES

Receivables Accounts

Due from Officers and Employees 287,856.67 359,206.09

Loans Receivables-Others 1,579,341.16 1,579,841.16

Intra-agency Receivables

Due from Other Funds 102,929.20 79,586.60

Other Receivables

Other Receivables 118.41 101.00

Total Receivables 1,970,245.44 2,018,734.85

INVENTORIES

Supplies

Annex A-3.1



CITY OF ILIGAN

BALANCE SHEET

Trust Fund As of December 31, 2013


2013 2012

Furniture and Fixtures 284,418.73 286,225.97

IT Equipment and Software 588,661.99 595,581.43

Library Books 385,440.79 385,440.79

Total Office Equipment, Furniture and Fixtures 2,971,712.42 2,986,494.04

MACHINERIES AND EQUIPMENT

Agriculture, Fishery and Forestry Equipment 33,000.00 33,000.00

Hospital Equipment 53,350.00 53,762.50

Medical, Dental and Laboratory Equipment 64,025.00 64,025.00

Total Machineries and Equipment 150,375.00 150,787.50


Motor Vehicles 4,697,523.27 4,747,896.48

Total Transportation Equipment 4,697,523.27 4,747,896.48OTHER PROPERTY, PLANT AND EQUIPMENT

Other Property, Plant and Equipment 302,348.10 302,348.10

Total Other Property, Plant and Equipment 302,348.10 302,348.10

CONSTRUCTION IN PROGRESS

Construction in Progress - Agency Assets 17,715,140.79 17,715,140.79

Public Infrastructures/Reforestation Projects

Construction in Progress - Highways and Bridges 3,462,119.00 3,462,119.00

Const. in Progress- Artesian Wells, Reservoirs,

Pumping Station and Conduits 7,135.00 7,135.00Const. in Progress - Other Public Infrastructures 2,206,410.00 2,206,410.00

Total Construction in Progress 23,390,804.79 23,390,804.79



Annex A-3.2



CITY OF ILIGAN

STATEMENT OF CASH FLOWSTRUST FUNDFor the Year Ended December 31, 2013(with Comparative Figures for CY 2012)

2013 2012

Cash OutflowsRetirement/Redemption of Debt Securities 0.00 0.00Payment of Loan Amortization - -Total Cash Outflows - -

Cash Provided by (Used In) - - Net Cash Provided By (Used In) (15,435,791.54) (16,935,981.58)Cash at the Beginning of the Period 420,662,366.71 437,598,348.29

Cash at the End of the Period 405,226,575.17 420,662,366.71

Annex A-4




Buhanginan Hills, Pala-o, Iligan City

STATUS OF APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS As of December 31, 2013

Fund Account : General Fund - Proper Legal Basis : A.O. 12-5954-114 - Regular

FUNCTION/PROGRAM/PROJECT/ACTIVITY APPROPRIATIONS ALLOTMENTS APPROPRIATIONS OBLIGATIONS UNOBLIGATED

Balance/(Deficit) BALANCES

CURRENT YEAR APROPRIATIONS

Personal Services 594,295,203.00 594,295,203.00 - 25,428,998.93 68,866,204.07

Maintenance and Other Operating Expenses 627,717,897.00 627,717,897.00 - 532,649,268.97 95,068,628.03

Capital Outlay 245,343,654.00 245,343,654.00 - 73,974,116.14 171,369,537.86

GRAND TOTAL 1,467,356,754.00 1,467,356,754.00 - 1,132,052,384.04 335,304,369.96

GENERAL PUBLIC SERVICES

CITY MAYOR'S OFFICE:

EXECUTIVE SERVICES

-General Administration - 1011

Personal Services 6,332,318.00 6,332,318.00 - 6,207,398.40 124,919.60

Maintenance and Other Operating Exp. 77,406,510.00 77,406,510.00 - 73,004,838.91 4,401,671.09

Capital Outlay 394,361.00 394,361.00 - 358,955.00 35,406.00

Sub-total 84,133,189.00 84,133,189.00 - 79,571,192.31 4,561,996.69

-License Inspection Services - 1015

Annex A-4









SANGGUNIANG PANLUNGSOD:

-Legislative Services - 1021


Maintenance and Other Operating Exp. 64,213,830.00 64,213,830.00 - 63,789,736.14 424,093.86

Capital Outlay 3,857,900.00 3,857,900.00 - 2,880,350.00 977,550.00

Sub-total 94,181,038.00 94,181,038.00 - 92,660,672.70 1,520,365.30

-Support Services - 1022



Capital Outlay 1,400,000.00 1,400,000.00 - 200,000.00 1,200,000.00

Sub-total 15,654,426.00 15,654,426.00 - 14,406,537.97 1,247,888.03

Total - SP 109,835,464.00 109,835,464.00 - 107,067,210.67 2,768,253.33

CITY ADMINISTRATOR'S OFFICE:-General Adminstration - 1031

Annex A-4









CITY CIVIL REGISTRAR'S OFFICE - 1051



Capital Outlay 215,000.00 215,000.00 - 195,000.00 20,000.00

Total - CCRO 9,600,054.50 9,600,054.50 - 7,925,203.77 1,674,850.73

CITY GENERAL SERVICES OFFICE - 1061

Personal Services 24,359,889.50 24,359,889.50 - 21,682,842.35 2,677,047.15Maintenance and Other Operating Exp. 6,109,800.00 6,109,800.00 - 5,795,360.48 314,439.52

Capital Outlay 130,000.00 130,000.00 - 130,000.00 -

Total - CGSO 30,599,689.50 30,599,689.50 - 27,608,202.83 2,991,486.67

CITY BUDGET OFFICE - 1071



Capital Outlay 670,000.00 670,000.00 - 493,000.00 177,000.00Total - CBO 12,596,282.00 12,596,282.00 - 10,837,693.01 1,758,588.99

Annex A-4









CITY LEGAL OFFICE - 1131


Maintenance and Other Operating Exp. 906,500.00 906,500.00 - 689,462.81 217,037.19

Total - CLO 6,636,019.50 6,636,019.50 - 5,863,411.67 772,607.83

CITY AUDITOR'S OFFICE - 1111

Maintenance and Other Operating Exp. 922,000.00 922,000.00 - 294,497.07 627,502.93Capital Outlay 3,650,000.00 3,650,000.00 - 150,000.00 3,500,000.00

Total - COA 4,572,000.00 4,572,000.00 - 444,497.07 4,127,502.93

CITY PROSECUTOR'S OFFICE - 1141


Total - CPO 591,400.00 591,400.00 - 532,466.07 58,933.93

ADMINISTRATION OF JUSTICE

Annex A-4









RTC - BRANCH V - 1151-4


Total - RTC Br. V 85,900.00 85,900.00 - 72,308.00 13,592.00

RTC - BRANCH VI - 1151-5


Total - RTC Br. VI 85,900.00 85,900.00 - 71,889.00 14,011.00

RTC - CLERK OF COURT - 1151-6


Total - RTC Clerk of Court 55,000.00 55,000.00 - 27,000.00 28,000.00

4TH SHARIAH COURT - 1151-7

Maintenance and Other Operating Exp. 179,900.00 179,900.00 - 153,809.00 26,091.00Total - 4th Shariah Court 179,900.00 179,900.00 - 153,809.00 26,091.00

Annex A-4

C GO O G









SOCIAL SERVICES


DEVELOPMENT SERVICES

-Library Services - 1122

Personal Services 1,612,104.00 1,612,104.00 - 968,045.84 644,058.16


Sub-total 1,797,104.00 1,797,104.00 - 1,085,658.48 711,445.52

-Cultural - 3391

Personal Services 104,162.50 104,162.50 - 23,395.70 80,766.80


Sub-total 686,162.50 686,162.50 - 360,783.70 325,378.80

-Sports/Dev't./Physical Fitness - 3392

Personal Services 1 274 946 00 1 274 946 00 - 899 499 75 375 446 25

Annex A-4










-Family Planning Services - 7621



Sub-total 3,600,714.50 3,600,714.50 - 3,484,730.38 115,984.12

-Retirement and Other Benefits - 9931


Maintenance and Other Operating Exp. 6,887,000.00 6,887,000.00 - 5,026,700.00 1,860,300.00Sub-total 50,949,960.00 50,949,960.00 - 47,819,207.48 3,130,752.52

-Misc. Other Purposes - 9993


Sub-total 2,870,000.00 2,870,000.00 - 2,300,000.00 570,000.00

-Misc. Other Purposes - 9994


Capital Outlay 7 125 000 00 7 125 000 00 - 2 600 008 00 4 524 992 00

Annex A-4










CITY HEALTH OFFICE - 4411



Capital Outlay 2,000,000.00 2,000,000.00 - 1,901,472.00 98,528.00

Total - CHO 50,344,262.00 50,344,262.00 - 42,260,276.17 8,083,985.83

CITY ADMINISTRATOR'S OFFICE:

-Civil Security - 1013



Total - CAD 26,930,139.00 26,930,139.00 - 23,762,507.26 3,167,631.74

CITY SOCIAL WELFARE AND DEV'T.OFFICE:



Annex A-4










GREGORIO T. LLUCH MEMORIALHOSPITAL - 4421



Capital Outlay 7,141,260.00 7,141,260.00 - 1,637,245.00 5,504,015.00

Total - GTLMH 107,117,859.00 107,117,859.00 - 87,875,025.18 19,242,833.82

TOTAL - SOCIAL SERVICES 399,816,448.00 399,816,448.00 - 309,590,934.37 90,225,513.63

ECONOMIC SERVICES


-Misc. Economic Services - 8859


Capital Outlay 178,387,585.00 178,387,585.00 - 36,014,411.46 142,373,173.54

Sub-total 205,270,275.00 205,270,275.00 - 57,267,527.41 148,002,747.59

-Misc. Economic Services - 8999

Annex A-4










CITY ENVIRONMENT MGT. OFFICE -

8731



Capital Outlay 200,000.00 200,000.00 - 149,740.00 50,260.00

Total - CEMO 48,928,718.00 48,928,718.00 - 39,213,045.69 9,715,672.31

CITY COOP. DEV'T. LIVELIHOODOFFICE - 8971



Total - CDLO 3,752,961.00 3,752,961.00 - 3,061,726.41 691,234.59

CITY ENGINEER'S OFFICE:



Maintenance and Other Operating Exp. 848,800.00 848,800.00 - 590,704.79 258,095.21Sub-total 6,649,750.50 6,649,750.50 - 5,226,590.58 1,423,159.92

Annex A-4










-Construction Division - 8752



Sub-total 4,016,403.50 4,016,403.50 - 3,680,458.77 335,944.73

-Maintenance Division - 8753



Sub-total 13,927,435.50 13,927,435.50 - 12,693,651.38 1,233,784.12

-Motorpool Division - 8754



Sub-total 26,458,149.00 26,458,149.00 - 22,592,197.78 3,865,951.22

Total - CEO 111,559,283.50 111,559,283.50 - 99,234,602.96 12,324,680.54

ILIGAN CITY WATERWORKS SYSTEM - 8771


Annex A-4










-Optns. of Slaughterhouse - 8812

Personal Services 979,555.00 979,555.00 - 963,196.73 16,358.27


Capital Outlay 7,580,000.00 7,580,000.00 - 44,000.00 7,536,000.00

Sub-total 10,123,616.00 10,123,616.00 - 2,539,825.97 7,583,790.03

Total - EEDMO 39,397,420.00 39,397,420.00 - 29,484,667.98 9,912,752.02

INTEGRATED BUS AND JEEPNEYTERMINAL:

-Northbound - 8821


Capital Outlay 37,740.00 37,740.00 - 34,560.00 3,180.00

Sub-total 1,684,240.00 1,684,240.00 - 1,666,842.16 17,397.84

-Southbound - 8821-1

Maintenance and Other OperatingExpenses 2,922,500.00 2,922,500.00 - 2,866,324.25 56,175.75

Sub total 2 922 500 00 2 922 500 00 2 866 324 25 56 175 75

Annex A-4



Republic of the PhilippinesCITY GOVERNMENT OF ILIGAN



Fund Account : General Fund-Proper Legal Basis : A.O. 10-5658-101 Regular



CONTINUING APPROPRIATIONSMaintenance and Other Operating

Expenses 9,770,823.70 9,770,823.70 - 7,229,108.10 2,541,715.60

Capital Outlay 30,052,145.37 30,052,145.37 - 12,149,863.29 7,902,282.08

GRAND TOTAL 39,822,969.07 39,822,969.07 - 19,378,971.39 20,443,997.68

SOCIAL SERVICES

CITY MAYOR'S OFFICE:5% City Disaster Risk Reduction and Mgt. Fund-

9940

Maintenance and Other OperatingExpenses 6,361,820.78 6,361,820.78 - 6,361,820.78 -

Capital Outlay 13,326,013.00 13,326,013.00 - 2,847,879.83 10,478,133.17

Sub-total 19,687,833.78 19,687,833.78 - 9,209,700.61 10,478,133.17

TOTAL - SOCIAL SERVICES 19,687,833.78 19,687,833.78 - 9,209,700.61 10,478,133.17

ECONOMIC SERVICES

Annex A-4






STATUS OF APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS As of November 30, 2013

Fund Account : Special Education Fund Legal Basis : LSB Ord. No. 1, series 2013



CURRENT YEAR APPROPRIATIONS


Maintenance and Other Operating Expenses 15,130,000.00 15,130,000.00 - 6,364,583.19 8,765,416.81

Capital Outlay 1,250,000.00 1,250,000.00 - 458,522.83 791,477.17

GRAND TOTAL 74,723,295.00 74,723,295.00 - 45,084,638.70 29,638,656.30

SCHOOL SUPERVISION - Gen.Admin.-3311

Personal Services 30,482,779.00 30,482,779.00 - 24,673,914.08 5,808,864.92Maintenance and Other Operating Expenses 7,320,000.00 7,320,000.00 - 3,093,587.19 4,226,412.81

Capital Outlay 1,250,000.00 1,250,000.00 - 458,522.83 791,477.17

Sub-total 39,052,779.00 39,052,779.00 - 28,226,024.10 10,826,754.90

PUBLIC EDUCATION - Elementary Schools - 3321


Sub-total 11,794,132.00 11,794,132.00 - 5,943,791.05 5,850,340.95

PUBLIC EDUCATION - Secondary Schools - 3322


Annex A-4







STATUS OF APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS As of November 30, 2013

Fund Account : SAGF - 20% Development Fund Legal Basis : A.O. 12-5954-114 - Regular



CURRENT YEAR APPROPRIATIONS

Maintenance and Other Operating Expenses 1,480,000.00 1,480,000.00 - - 1,480,000.00Financial Expenses 97,179,772.00 97,179,772.00 - 77,766,277.99 19,413,494.01

Capital Outlay 61,708,700.00 61,708,700.00 - 42,246,652.83 19,462,047.17

GRAND TOTAL 160,368,472.00 160,368,472.00 - 120,012,930.82 40,355,541.18

20% DEVELOPMENT FUND:

-Agricultural Development Projects -8911

Maintenance and Other Operating Expenses 1,480,000.00 1,480,000.00 - - 1,480,000.00

Capital Outlay 6,544,356.00 6,544,356.00 - 5,524,355.17 1,020,000.83

Sub-total 8,024,356.00 8,024,356.00 - 5,524,355.17 2,500,000.83

-Purchase, Construction and Improvement

of Gov't.Facilities-Economic Services -8918

Capital Outlay 11,164,344.00 11,164,344.00 - - 11,164,344.00

Sub-total 11,164,344.00 11,164,344.00 - - 11,164,344.00

-Other Economic Services Project - 8919

Capital Outlay 44,000,000.00 44,000,000.00 - 36,722,297.66 7,277,702.34Sub-total 44,000,000.00 44,000,000.00 - 36,722,297.66 7,277,702.34

Annex A-4






Fund Account : SAGF - 20% Development Fund Legal Basis : A.O. 10-5658-101 Regular



CONTINUING APPROPRIATIONS


Capital Outlay 58,941,586.90 58,941,586.90 - 17,091,266.08 41,850,320.82

Financial Expenses 50,414,300.30 50,414,300.30 - 35,234,242.51 15,180,057.79

GRAND TOTAL 116,462,523.15 116,462,523.15 - 53,801,286.24 62,661,236.91

20% Development Fund

-Purchase, Construction & Improvement of

Gov't. Facilities-Health-4918

Maintenance and Other Operating Exp. 195,283.86 195,283.86 - - 195,283.86

Capital Outlay 430,417.52 430,417.52 - 307,755.97 122,661.55

Sub-total 625,701.38 625,701.38 - 307,755.97 317,945.41

-Others-4919

Maintenance and Other Operating Exp 507 821 05 507 821 05 - - 507 821 05

Annex A-4






Fund Account : SAGF - 20% Development Fund Legal Basis : A.O. 10-5658-101 Regular



-Repair & Maintenance of Gov't. Facilities-

Economic Services-8917Maintenance and Other Operating

Expenses 2,266,239.89 2,266,239.89 - 446,112.34 1,820,127.55

Capital Outlay 690,546.22 690,546.22 - 595,942.71 94,603.51

Sub-total 2,956,786.11 2,956,786.11 - 1,042,055.05 1,914,731.06

-Purchase, Construction and Improvement of

Gov't. Facilities-Economic Services-8918

Capital Outlay 48,869,460.62 48,869,460.62 - 14,387,771.54 34,481,689.08

Sub-total 48,869,460.62 48,869,460.62 - 14,387,771.54 34,481,689.08

-Other Economic Services Project-8919Maintenance and Other Operating

Expenses 2,765,470.75 2,765,470.75 - 1,029,665.31 1,735,805.44

Capital Outlay 7,059,056.05 7,059,056.05 - 1,613,482.97 5,445,573.08

Annex B-1

(AAR Page 23)



(AAR Page 23)

Details of Asset Accounts with Negative and Irregular BalancesReference: Schedules CY 2013 Financial Statements

ACCOUNT: Cash Disbursing Officers

Code Name / DescriptionAmount

RemarksNegative Irregular Balance

103-001-319 Generalao, Tessie Q. P 0.52 P Payroll Fund

103-002-319 Generalao, Tessie Q. 35.55 Miscellaneous CAs

103-002-002 B Pancito, Agnes 60.06 Miscellaneous CAs

103-003-002 B Pancito, Agnes 0.02 Revolving Fund

103-1333 Orbe, Alma Mejila 0.77

103-1421 Junsan, Virginia Pialan 253.20 Revolving Fund

103-167 Dy, Henry C. 69,037.67 Revolving Fund

103-186 Reyes, Ma. Asuncion Medrano 1,000.00 Revolving Fund

103-193 Balisco, Rosalie Erat 8,190.30 Revolving Fund

103-214 Redondo, Aurea Suzette Dela Cruz 3,448.18 Revolving Fund

103-270 Mirasol, Gustavo Ramiro 10.00 Revolving Fund

103-288 Zarsuelo, Salvasion L. 11.50 Revolving Fund

103-436 Gonzaga, Viviene Jacalan 900.00 Revolving Fund

103-549 Molo, Octavious Juarez 2,000.00

Total P 84,886.94 P 60.83

Annex B-1

(AAR Page 23)



( g )

ACCOUNT: Due from Officers and Employees - Travel

Code Name / Description Amount RemarksNegative Irregular Balance

123-001-008 B Bado, Miraflor P P 19.90

123-001-0001L Dy, Ma. Luningning Lagcao 33.72

123-001-019 B Echavez, Eusebio 0.01

123-001-2005 Gulala, Luningning 200.00

123-001-1930 Lagare, Emmanue 32.75

123-001-610 Mantos, Peregrina Lamayo 0.04

123-001-412 Nolasco, Andrew Zamora 0.33

123-001-9974 Oliveros, Ma. Estelita R. 17.20

123-001-037 B Quidlat, Honey 17.00

ACCOUNT: Due from Officers and Employees

Under Collection/Remittances/Deposits

123-002-842 B Abragan, Angelito P. 2.34

123-002-9711 Actub, Troy 0.08123-002-9713 B Aliño, Marisa 28.50

123-002-285 Allonar, Junel Valdez 0.33

123-002-004 B Andot, Christy 34.52

123-002-316 Bongo, Edgardo Martin 2,760.62

123-002-1495 Burdam Jocelyn Madrid 2.14

123-002-9699 Cabataña, Danton 50.00

123-002-9709 B Cabili, Marisa 1.60123-002-0045 B Dacalos, Liezl C. 26.00

123 002 9698 D d M it Y 20 30

Annex B-1

(AAR Page 23)



( g )

ACCOUNT: Due from Officers and Employees - Travel


123-002-132 Surmion, Judith Sebua 15.00

123-002-835 Tabig, Cleofe 40.93

123-002-0016 B Yñaz, Uldarica 42.73

123-003-310 Colambo, Virgencita Noval 15.00

123-003-841 B Namatay, Ludena 21.60

Total P 2,987.55 P 673.42

ACCOUNT: Loans Receivable - Others



126-014-0010011 Napocor Elem. School Teachers Coop. P 20,208.60 P

126-022-0150 Arana, Tiffany 115.24

126-022-0004 Bartolata, Alejandra 926.96

126-022-0005 Bonachita, Agnes O. 62.58

126-022-0024 Cuajao, Rudy 177.68

126-022-0003 Esic, Ma. Teresita O. 230.00

126-002-0001 Gorres, Rowena R. 60.03

126-022-0002 Ledesma, Carmelita C. 230.00

126 022 0025 Malagum Leo 43 25

Annex B-1

(AAR Page 23)



(AAR Page 23)

ACCOUNT: Other Receivables


149-001-0008 Angin, Amanodin P 847.00 P

149-002-204-037-406-

000 A Best Express 0.09

149-002-101-443-685 ABR Construction Services 4.00

149-002-144-261-897 Café Albena and Gen Merchandise 4.50

149-002-937-907-964 EGD General Merchandise 0.68149-002-102-727-399 EMC Newstand (CM Enterprises) 0.06

149-002-768-480-051 Globe Telecom/Innove Comm., Inc. 0.02

149-002-102-728-842 Levan Trade & Multi Resources 8.10

149-002-493-283-000 Rajah Broadcasting Nwtqoth 2.00

149-002-122-157-199 SCP Gasoline Fuel Service Station 0.50

149-002-130-475-588 Super Industrial and Chemical Supply 0.01

149-002-101-102-728-374 URC Enterprises 8.72Total P 847.00 P 28.68

ACCOUNT: Receivables - Disallowances/Charges



146-001-1027 Abuel, Edwin Actub P 500.00 P

146-001-1757 Ampaso Rakima Lomondot 500 00

ACCOUNT: Receivables - Disallowances/Charges

d /Amount

k





146-001-646 Lacuna, mary Joy Lluisma 500.00

146-001-1194 Limbo, Jose Pulescas 1,000.00

146-001-331 Lluch, Nicholas Jose Halibas 0.60

146-001-7809 Maghanoy, Julia 1,500.00

146-001-318 Malanog, Luzbella Solidum 10.92

146-001-1066 Manaloto, Inocentes Zalsos 0.10

146-001-858 Mercado, Emma Orellana 500.00

146-001-333 Mislang, Reagan Fernandez 378.37

146-001-1650 Nadayag, Renato Chavez 1,000.00146-001-804 Nepomuceno, Manuela Cañete 1,500.00

146-001-301 Padinit, Arnel Renante Alinsub 1,005.00

146-001-1440 Paquingan, Rolando Cabanto 500.00

146-001-278 Paterno, Nerissa Pestolante 66.94

146-001-330 Pobadora, Cecilia Gutierrez 1,000.00

146-001-1763 Quitos Jr., Benjamin Waga 0.60

146-001-1020 Ragandang, Romualdo Janolgue 500.00

146-001-1061 Ramos, James Talaroc 0.09146-001-322 Ramos, Merlyne Nadorra 458.78

146-001-545 Ratunil, Henry Quidlat 1,000.00

146-001-7106 Reuyan, Eric 33.86

146-001-1809 Reys, Raul Bado 500.00

146-001-1661 Rollon, Joseph Cabanlit 1,000.00

146-001-11 Roque, Reynaldo Lagcao 3,000.00

146-001-RTC 006 Salazar, Valerio M. 1,000.00

146-001-257 Sanchez, Jr. Ceferino Velasquez 500.00

146-001-3686 Saragena, Sean James 500.00

Annex B-2(AAR Page 24)



( g )Details of Unliquidated Cash Advances

(Due from Officers and Employees and Cash Disbursing Officer Accounts)

Aged 30 Days and Over /Over One Year

Description Code AmountCash Advance for

Confidential &Intelligence Funds

TOTAL

GENERAL FUNDS:

ALBAO, CAMILA CABILI 103-787 P 5,373.00 P P 5,373.00ALMANZOR,FRANCISCO B. 103-335 806,017.35 806,017.35ALVAREZ,MARILOU P. 103-298 5,000.00 5,000.00ANUGOD, NASSER L 103-7993 132,000.00 132,000.00ARANTON, NORMA REUYAN 103-567 19,365.28 19,365.28ARES,CRISTINA . 103-006 B 75,000.00 75,000.00BALAT,ERNESTO M. 103-266 512,519.60 512,519.60BALISCO, ROSALIE ERAT 103-193 (8,190.30) (8,190.30)

BAÑARES, JR, BENEDICTO CAÑETE 103-1604 4,900.00 4,900.00BARSUMO, DORIS TANTICO 103-532 3,975.00 3,975.00BONGO, EDGARDO MARTIN 103-002-316 415,426.00 415,426.00CABASA,PRECIANA . 103-012 B 30,000.00 30,000.00CABIGON, ALEXANDER LAYAM 103-1690 5,000.00 5,000.00CABILI, TOMAS 103-021GF 2,000.00 2,000.00CAPONONG, III, DONATO CHAN 103-1048 89,246.75 89,246.75CASTILLO, ROSEMARIE CALA 103-525 30,000.00 30,000.00

CATOLICO, MERLITO CASTOR 103-1870 3,971.00 3,971.00CAYONGCAT, SUBAER 103-020GF 49,178.35 49,178.35




( g )Details of Unliquidated Cash Advances

(Due from Officers and Employees and Cash Disbursing Officer Accounts)




TOTAL

HONCADA, CHRISTOPHER 103-002-835 43,200.00 43,200.00

INANYOG, EUSEBIO REDULLA 103-1272 45,000.00 45,000.00ISIDRO, GRACE LAO 103-1330 11,174.35 11,174.35JABONILLO, RENADEL 103-6821 842.50 842.50JULIA, DALE GIL 103-006GF 26,600.00 26,600.00JUNSAN, VIRGINIA PIALAN 103-1420 (253.20) (253.20)LACSI, EUGENIO 103-007GF 14,499.79 14,499.79LANDONG,BENJAMIN 103-047 B 92,000.00 92,000.00LANTAY, NICOLETTE DELA CRUZ 103-217 3,374.50 3,374.50

LARDIZABAL, MAY MITZI 103-008GF 95,180.00 95,180.00LLUCH, PACIFICADOR SR. 103-009GF 9,382.80 9,382.80LUSING, EMILY BACALSO 103-781 6,500.00 6,500.00MACARAEG, CUDIVINA JOY 103-010GF 9,896.50 9,896.50MAGLINTE, ELIZABETH BUBULI 103-194 31,262.00 31,262.00MAGUMPARA, JOCELYN PEREZ 103-652 1,400.00 1,400.00MALANOG, LUZBELLA SOLIDUM 103-318 36,221.07 36,221.07MANGUBAT, GEORGITTA CABILI 103-533 12,769.00 12,769.00

MASCARIÑAS, MARIA PURA CABILI 103-577 17,273.55 17,273.55MATA, LORNA MERCEDITA U. 103-161 600,000.00 600,000.00




Details of Unliquidated Cash Advances(Due from Officers and Employees and Cash Disbursing Officer Accounts)




TOTAL

REDONDO, AUREA SUZETTE

PENPEÑA103-214

(3,448.18) (3,448.18)REGENCIA, CELSO G. 103-09211 9,000,000.00 9,000,000.00RESMA, PILAR UTLANG 103-148 14,638.21 14,638.21REYES, MA. ASUNCION MEDRANO 103-186 (1,000.00) (1,000.00)ROSALES, AGUSTINA 103-013GF 9,915.56 9,915.56SABADOQUIA, FARIDA GRACE 103-014GF 71,240.00 71,240.00SABADUQUIA, LANI LLUISMA 103-022GF 5,000.00 5,000.00SAGRADO, ESPERIDON 103-015GF 249,000.00 249,000.00

SALINAS, VIRGINIA ACTUB 103-178 215,521.96 215,521.96SAUSA, DELIA BAROMAN 103-1541 505.00 505.00SAYTAS,JOSEPHINE S. 103-280 538.46 538.46SECHONG, JEMREVITH J 103-1421 5,000.00 5,000.00SEMAÑA, JAIME P 103-8966 214,119.75 214,119.75TABIMINA, MAX 103-016GF 3,255.00 3,255.00TAOJO, JOSEPHINE DALANGIN 103-223 25,960.00 25,960.00TAPA, DATUKAN 103-002-831 7,151.79 7,151.79

TE, MARILYN 103-017GF 6,000.00 6,000.00TEANCO, JULIANA ACEBES 103-531 1,758.00 1,758.00TINOY DANILO LOMONGO 103 676 77 490 00 77 490 00




Details of Unliquidated Cash Advances(Due from Officers and Employees and Cash Disbursing Officer Accounts)




TOTAL

SABADUQUIA,FARIDAH BADELLES 103-003R 535,829.70 535,829.70

TARONA, LINDA A 103-1266 4,805.00 4,805.00VILLACORTA, MERCEDES 103-004R 270,000.00 270,000.00VILLANUEVA, EVELYN VILLOGA 103-1273 11,982.70 11,982.70ZUÑIGA, CRISTITUTO 103-005R 150,000.00 150,000.00FERNAN, LUISITA LUMAIN 103-002-321 1,250.00 1,250.00GENERALAO, TESSIE QUILOG 103-002-319 2,000,000.00 2,000,000.00MARTINEZ, GIRLIE JUMAWAN 103-002-830 275,041.62 275,041.62LARRAZABAL, SIMPLICIO N. 103-003-003 22,610.74 22,610.74

OYAO, LORENA 103-002R 39,400.00 39,400.00BALAT ,ERNESTO M. 103-266 43,413.92 43,413.92

Grand Total P 13,991,975.21 P 97,350,000.00 P 111,341,975.21




( ge )

Schedule of Unliquidated Petty Cash FundAs of December 31, 2013

General Fund

Code Description Amount

104-1352 SUAN, MYRNA PADRO P 5,000.00104-14632 ILPA ACPULCO 4,500.00104-1487 CRUZ, AL LOMOSAD 2,000.00104-1531 LACIA, JOEL FEROLIN 5,000.00104-179 BUQUE, WENDELL LIM 5,000.00104-240 ACAPULCO, ILPA LASALA 3,000.00

104-280 SAYTAS, JOSEPHINE SACAYAN 301.75104-370 ALCESTO, RAQUEL ERAT 5,000.00104-391 PIRANTE, PHILIPPE LAPASIGUE 5,000.00104-404 MIMBISA, JR, ALI MANGADANG 15,000.00104-433 ENRIQUEZ, MA. ELENA ECARMA 175.00104-445 ALIVIO, ROLAND SAREN 5,000.00104-446 SECHONG, RAOUL RENEE BASALAN 5,000.00104-449 MEJIA, ANTONIO CHAN 328.50104 465 DUEÑAS JOAN ORTEGA 3 585 70

Annex B-4

(AAR Page 28)



( g )

Schedule of Other Investments and Marketable SecuritiesAs of December 31, 2013


197-0001LGU- LBP ASSISTANCEPROGRAM

6,000,000.00

Total 6,000,000.00

Cooperatives - Beneficiaries of "Share Financing Program"As of February 28, 2014

Name ofCooperatives

Date ofRelease

LBP Iligan LGU LBP Iligan LGU Account Status

LUMAD 2003-2004 P 3,430,328.16 P 1,529,432.34 P 3,364,863.81 P 1,519,144.38 Written-off 5/31/10

Annex B-5

(AAR Page 29)



Schedule of Construction in Progress Not Transferred to Appropriate Infrastructure Accounts

then to Government Equity at Year-EndAs of December 31, 2013

Description GF SEF TF Total

Construction in Progress - AgencyAssets P 271,669,880.77 P 12,956,636.81 P 17,715,140.79 P 302,341,658.37Public Infrastructure/Reforestation Projects -

Construction in Progress-Roads,Highways and Bridges 134,818,522.57 3,462,119.00 138,280,641.57

Construction in Progress-Plazas,Parks and Monuments 2,058,473.40 2,058,473.40

Construction in Progress-PumpingStations and Conduits 444,602,464.55 7,135.00 444,609,599.55

Construction in Progress-Irrigation,Canals and Laterals 30,781,914.14 30,781,914.14

Construction in Porgress-FloodControls 3,769,296.82 3,769,296.82

Construction In Progress-Waterways, Aqueducts, Seawalls -

Riverwalls and Others 5,625,401.21 5,625,401.21

Construction in Progress-OtherPublic Infrastructures 79,369,696.02 236,686.90 2,206,410.00 81,812,792.92

Construction in Progress-Reforestation - Marshland/ -

Swampland 7,197.08 7,197.08

Annex B-6

(AAR Page 30)



Schedule of Accounts Payable Five (5) Years and Above

General Fund As of December 31, 2013


401-000-000-05D Rassluck Trading P 81,930.00

401-000-000-09D Padilla Press 1,500.00

401-000-000-104D Archangels Funeral Homes 3,000.00

401-000-000-15D SIG - ILIGAN 37,700.00

401-000-000-17D GS Toreta Trading 80,000.00

401-000-000-22D Multimed Industries 35,156.00

401-000-000-25D Iligan Printing Press 14,790.00

401-000-000-26D Iligan Filipinas 130.00

401-000-000-27D Ben Enterprises 1,323.00

401-000-000-32D Iligan Transmotors 50,000.00

401-000-000-36D Regional Coop Training 10,000.00

401-000-000-39D First Laguindingan Handicraft 29,230.00

401-000-000-46D Dado's Lechon 11,181.91

401-000-000-52D Algin Press 26,487.50

401-000-000-58D Cruz Key Shop 14,400.00

401-000-000-59D Merge System 7,450.00

401-000-000-62D MVG Productions 3,600.00

401-000-000-66D Dennie So 9,535.00

401-000-000-72D Pamarose 7,436.40

401-000-000-82D Ceramic Training Center 15,000.00401-000-000-83D Bamboo Technology Resource Center 45,000.00

401 000 000 84D Eva Lee Kariala Show 4 500 00

Annex B-6

(AAR Page 30)






401-004-365-070 JJ Horizon 914,500.00

401-004-988-761 Speed Drill Construction & Trading, Inc., 280,000.00

401-004-998-273 Global Chips Technologies Inc. 4,910.00

401-098-005-896-084 TOYOTA 390.60

401-098-103-310-468 Northern Mindanao Marketing 15,000.00

401-101-147-232-678

Starbelle Gen. Merch. 3,800.00

401-101-182-405-788 Manokan sa Junction 3,500.00

401-101-415-767 Bordeous. Venerando 320.00

401-101-436-329 Maderazo, Arturo 200.00

401-101-919-542-324 Wagon Trail Garments Manufacture 8,910.00

401-101-920-309-943 FAJ House Cakes 2,800.00

401-101-928-738-497 Debbie's Delights Food Haus 5,103.00

401-102-722-919 Belmonte, Vicente/VF Belmonte Enterprises 13,316.73

401-102-727-921 Celica Auto Repair Shop 1,175.75

401-102-728-253 Tan Lam Glass Palace 21,820.00

401-102-728-592 Asiatic Ventures 76,660.50

401-102-730-400 Castrund Enterprises 365,010.00

401-102-731-178 EGU Enterprises 3,230.00

401-102-735-420 GIOVANNI .CONSTRUCTION 36,000.00

401-10602 MALONGAYON, WILFREDO 800.00

401-106-114-495 Sungold Electronic Supply 28,250.00

Annex B-6

(AAR Page 30)






401-133-360-230 Blue Circle Private Emission 6,015.00

401-136-496-024 ESA Enterprises 11,085.00

401-144-261-351 Collado, Emelia 100.00

401-151-590-147 Petron Tibanga Service Center 157,583.54

401-153-547-176 Villarin, Livey 480.00

401-160-212-669 Cabague, Pablito 3,670.00

401-160-212-677 Caga, Raides 200.00

401-163-362-601 Coronado, Alice 1,190.00

401-167-194-053 Agina Enterprises 97,356.00

401-168-389-909 VJY Marketing 5,000.00

401-168-390-902 Rene's Diners 1,170.00

401-168-398-490 Tomawis And Sons Petron Super Station 28,689.52

401-171-968-071 Arquiza, Florencia 820.00

401-176-015-854 Pimex Trading 327,055.52

401-176-616-112 RMC Diesel Calibration Service Center 50.00

401-180-005-690 Carampatan, Ibarra 70.00

401-182-327-244 Imperial Aluminum and Paint Supply 20,997.00

401-182-328-158 SLB Electronics Service Center 78,600.00

401-182-404-213 Lacia, Ma. Luisa 16,370.00

401-182-405-718 Larrazabal, Nalita 10,146.13401-182-434-626 Café Hermoso 19,230.00

401 182 436 824 Color Ads & Craft 6 150 00



Annex B-6

(AAR Page 30)






401-942-826-830 Blue Shield Pharmacy 15,208.30

401-944-480-185 RYI Mechanical Parts Trading & Services 708.00

401-AO-12-15 Metal Gear Motor Sales 9,500.00

401-AP-07-20732 TESDA 5,180.00

401-AP-07-32 Mindanao Gold Star Daily 28,000.00

401-hi-12 V-Hi-12 1,035.00

401-IP-2008 Bohol Tinsmith 66,000.00

P 6,226,095.35



Annex B-7

(AAR Page 30)

S h d l f D PAG IBIG Wi h N i B l



Schedule of Due to PAG-IBIG With Negative BalancesAs of December 31, 2013

414-004-999999 Calamity Loan P (902.00)

Total P (902.00)

Schedule of Due to Officers and Employees With Negative BalancesAs of December 31, 2013

403-003-63D ACEDILLO, ADOLF P 12,500.00

403-003-539 BELEY, MARIE ANN JAYME 2,372.00

403-003-0100 DELA PEÑA, JASMIN A. 3.00403-003-0244 LUNGTAD, JUREZA P. 9,000.00

403-003-0002 Savings per Supplemental Budget No. 2, CY-2012 56,846.63

403-003-636 TIMAJO, SALOME DALANGIN 14,623.00

403-007-76 ABAPO, GENO MANGAO 0.01

Total P 95,344.64

Details of Releases for Confidential and Intelligence Funds

CASH Li id ti Details of Charges



164

Date Particulars ReferenceCASH

ADVANCES

Liquidations

submitted

Details of ChargesAudit Remarks

Intelligence Confidential

CY 2013 Celso G. Regencia

Dec DV # D-13-12-1253/54Ck# 44749964/65

dtd. 12/18/133,000,000.00 - 1,500,000.00 1,500,000.00

Oct DV # D-13-10-0959/60Ck# 42452769/70

dtd. 10/7/13 4,500,000.00 - 2,250,000.00 2,250,000.00

LRs were submitted and

acknowledged received by

COA. No credit notice issued

pending compliance of

additional documents

required.

July DV # D-13-07-0543/4442452351/52 dtd

7/2/13 4,500,000.00 2,250,000.00 2,250,000.00

Lawrence Ll. Cruz

Jun 28 JEV # 2013-06-009476 Ck# 42452261/62dtd. 6/13/13

3,000,000.00 1,500,000.00 1,500,000.00

Jun 25 JEV # 2013-06-008926 Ck# 40452035/36

dtd. 6/13/13- 4,500,000.00 2,250,000.00 2,250,000.00

Jun 13 JEV # 2013-06-009475Ck# 42452262 1,500,000.00 -

JEV # 2013-06-009474Ck# 42452261 1,500,000.00 -

Mar 29 JEV # 2013-03-006786 Ck# 40217640/41dtd. 1/28/13

- 4,500,000.00 2,250,000.00 2,250,000.00


acknowledged received by COA. Nocredit notice issued pending

compliance of additional documents

required.

Mar 25 JEV # 2013-03-005111 Ck# 42452035 2,250,000.00 -



ADVANCES

Liquidations

submitted





165

g

JEV # 2013-03-005110Ck# 42452036 2,250,000.00 -

Jan 28 JEV # 2013-01-000199Ck# 40217641 2,250,000.00 -

JEV # 2013-01-000198Ck# 40217640 2,250,000.00 -

Total CY

2013 24,000,000.00 12,000,000.00

CY 2012 Lawrence Ll. Cruz

Dec 27 JEV # 2012-12-030108 Ck# 40216976/77

dtd. 9/11/12

- 4,500,000.00 2,250,000.00 2,250,000.00


acknowledged received by

COA. No credit notice

issued pending

compliance of additional

documents required.Oct 03 JEV # 2012-10-027631

Ck# 40216620/21 - 4,500,000.00 2,250,000.00 2,250,000.00

Sep 11 JEV # 2012-09-023897Ck# 40216977 2,250,000.00 -

JEV # 2012-09-023896Ck# 40216976 2,250,000.00 -

Aug 28 JEV # 2012-08-012772Ck# 37711829 - 2,250,000.00 - 2,250,000.00 LRs were submitted and acknowledged received

by COA. No credit notice issued pending

compliance of additional documents required.

JEV # 2012-08-012769 Ck# 37711828 - 2,250,000.00 2,250,000.00 -

Jun 27 JEV # 2012-06-016609Ck# 40216620 2,250,000.00 -

JEV # 2012-06-016607 Ck# 40216621



ADVANCES

Liquidations

submitted





166

g

2,250,000.00 -

Apr 20 JEV # 2012-04-002899Ck#

37711518/519

dtd. 1/18/12- 4,500,000.00 2,250,000.00 2,250,000.00

JEV # 2012-04-002898Ck# 37711209

dtd. 12/16/11 - 1,900,000.00 1,900,000.00 -

Apr 11 JEV # 2012-04-012766Ck# 37711829 2,250,000.00 -

JEV # 2012-04-012765Ck# 37711828 2,250,000.00 -

Jan 18 JEV # 2012-01-003161Ck# 37711519 2,250,000.00 -

JEV # 2012-01-003159Ck# 37711518 2,250,000.00 -

Total CY

2012 18,000,000.00 19,900,000.00


Dec 30

Adjustment to correct

overstatement of

Check; JEV # 2011-12-

033971

Ck# 37710687

dtd. 09/23/11 - 500,000.00 500,000.00 -

JEV to be retrieved for

verification

Dec 23 JEV # 2011-12-033964 Ck# 37710686/87

dtd. 09/23/12- 4,500,000.00 2,250,000.00 2,250,000.00

LRs were submitted andacknowledged received by

COA. No credit notice issued

pending compliance ofDec 16 JEV # 2011-12-030747 Ck# 37711209



ADVANCES

Liquidations

submitted





167

1,900,000.00 - additional documents

required.

Dec 06 JEV # 2011-12-023110 Ck# 34999636dtd. 04/04/11 - 2,250,000.00 - 2,250,000.00

JEV # 2011-12-023109Ck# 34999637

dtd. 04/04/11 - 2,250,000.00 2,250,000.00 -

Sep 30 JEV # 2011-09-028194

Ck#s.

35000152/153

dtd 07/04/11- 4,500,000.00 2,250,000.00 2,250,000.00

Sep 23 JEV # 2011-09-018258Ck# 37710687 2,750,000.00 -

JEV # 2011-09-018255 Ck# 37710686 2,250,000.00 -

Jul 04 JEV # 2011-07-009828Ck# 35000153 2,250,000.00 -

JEV # 2011-07-009827Ck# 35000152 2,250,000.00 -

Jun 27 JEV # 2011-06-004617Ck# 34999128

dtd. 01/05/11 - 2,250,000.00 2,250,000.00 -

JEV # 2011-06-004615 Ck# 34999129

dtd. 01/05/11 - 2,250,000.00 - 2,250,000.00

Apr 04 JEV # 2011-04-005389Ck# 34999637 2,250,000.00 -

JEV # 2011-04-005386Ck# 34999636 2,250,000.00 -



ADVANCES

Liquidations

submitted





168

Jan 05 JEV # 2011-01-000019Ck# 34999129 2,250,000.00 -

JEV # 2011-01-000016Ck# 34999128 2,250,000.00 -

Total CY

2011 20,400,000.00 18,500,000.00


Dec 31 JEV # 2010-12-036945Ck#s. 33614175/76

dtd. 08/18/10

-4,000,000.00

2,000,000.00 2,000,000.00

Oct 14 JEV 2010-10-024737/3833614529/40

2,500,000.00 1,250,000.00 1,250,000.00

Sep 07 JEV # 2010-09-018170Ck# 31444148 dtd.

01/12/10-

2,000,000.002,000,000.00 - LRs were submitted and

acknowledged received by COA.

No credit notice issued pending

compliance of additional

documents required.

JEV # 2010-09-018169Ck# 31444149 dtd.

01/12/10-

2,000,000.00- 2,000,000.00

Aug 18 JEV # 2010-08-026705Ck# 33614176

2,000,000.00-

JEV # 2010-08-026703Ck# 33614175

2,000,000.00-

Jun 18 JEV 2010-06-014674/77CK 33613670/71

4,000,000.00

Mar 18 JEV 2010-03-08877/78CK 31444743/744

4,000,000.00

Jan 12 JEV # 2010-01-000335Ck# 31444149

2,000,000.00-

COA Annual Audit Report (2013) - Iligan City

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Transcript of COA Annual Audit Report (2013) - Iligan City