Marikina City Audit Report

8/19/2019 Marikina City Audit Report

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Republic of the PhilippinesCOMMISSION ON AUDIT

Commonwealth Avenue, ue!on Cit"

ANNUA# AUDIT R$PORT

on the

Cit" of Ma%i&ina

'o% the (ea% $n)e) Decembe% *+, -++


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$.$CUTI/$ SUMMAR(

A0 1i2hli2hts of 'inancial Ope%ation

For the calendar year 2011, the appropriations of the City Government of Marikinafor the General and the Special Education Funds totaled P1 !"# $illion %$li&ationschar&ed a&ainst these appropriations amounted to P1 '01 $illion

App%op%iations Obli2ations

Current (ppropriationGeneral Fund 1,"12,2)",020 1,2*1,0)!,12#Special Education Fund 1*0,000,000 121,)#+,+2+Su$ total 1,+'2,2)",020 1,*"*,0#',#"*

Continuin& (ppropriationGeneral Fund 20",20",!'! '1,+)',#)'Special Education Fund ),')+,+*2 ",!"",+'2Su$ total 21',#02,'!0 '#,""0,'*+

Grand -otal 1,!"+,))#,"00 1,'00,+2",1!)

-he City reali.ed an a&&re&ate income of P1 "2' $illion or an increase of P"**,+*1from last year/s P1 "2* $illion

%peratin& ncome consists of -a evenue of P+#) *0# million from P#0# "+#million last year resultin& to a decrease $y P2! 2+1 million or * )) per cent due tothe reduction of eal Property -a $y "0 per cent as per %rdinance 3o !!, series of

2010, and General ncome of P!'" million from P!1+ 20" million last year 4ith anincrease of P2! #)" million or * "* per cent Share in the nternal evenue (llotment increased $y P*! *"2 million or # 12 per cent

-otal operatin& and financial e penses of P1 *'0 $illion re&istered an increase of P1'0 ')+ million or 11 #1 per cent from last year/s P1 200 $illion

-he e penses 4ere classified as follo4s5 Current %peratin& E penses, P1 1)!$illion, Financial E penses, P" *+0 million, Su$sidies, 6onations and E traordinaryE penses, P1*+ +)' million

30 Scope of the Au)itFinancial and compliance audit 4ere conducted on the accounts and transactions of the City Government of Marikina for Calendar 7ear 2011 -he audit 4as aimed atascertainin& the fairness of the presentation of the City/s financial statements andcompliance to la4s, rules and re&ulations

i


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C0 Au)ito%4s Opinion on the 'inancial Statements

-he Supervisin& (uditor rendered a 8ualified opinion on the fairness of thepresentation of the financial statements in vie4 of the variance of P)+ 2"2 million asof 6ecem$er *1, 2011 $et4een the $alance per $ooks and $alance per physicalcount of the City/s property and e8uipment 4hich has not $een reconciled 9ike4ise,no Physical nventory eport of the City/s recorded inventory amountin& to P+* "'0million as of 6ecem$er *1, 2011 4as su$mitted (lso, various property ande8uipment as 4ell as lia$ility accounts include reconcilin& items amountin& toP#*2 *2! million and P+ 1+' million, respectively Conse8uently, the accumulateddepreciation totallin& P1"+ 2") million of those property classifications 4ithreconcilin& items is understated since depreciation 4as not computed on the

econcilin& tems account econcilin& tems are those $alances of the accountsthat cannot $e identified or accounts 4ithout details Further, the %ther eceiva$lesaccount includes dishonored checks amountin& to P# *!! million 4hich have $eenoutstandin& for over three years -he inade8uacy of records did not permit us toapply alternative procedures to esta$lish the validity and correctness of the $alancesof the mentioned accounts

Moreover, the ad:ustin& entry made on the cost of land 4ith ta declaration namedunder the City Government of Marikina de$itin& the 9and account and creditin& the9and econcilin& items amountin& to P"#0 2*1 million usin& market values rather than the purchase cost of the land is erroneous $ecause the said market value is notyet the cost of these lands at that time the $alances 4ere recorded in the econcilin&

tems account in 200' or earlier Further, the non reversal of the fully paid accountsof the #)! $eneficiaries of the elocation Pro&ram of the City resulted in theoverstatement of the paya$le account and understatement of the ncome account-he paya$le account should $e de$ited and income should $e reco&ni.ed upon fullsettlement $y the $eneficiary of the contract amount

D Si2nificant Au)it 'in)in2s an) Recommen)ations

-he follo4in& are the si&nificant findin&s and recommendations in the audit of theCity Government of Marikina for the year 20115

1. 3et variance amountin& to P)+ 2"2 million $et4een the esult of Physicalnventory and $alances per ;ooks of the Property and E8uipment account 4as

not reconciled $y the General Services %ffice thus, renderin& the account $alance dou$tful


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cannot $e determined, their estimated values as 4ell as their remainin& usefullives may $e assi&ned $y an appraisal committee

?e further recommended that e tra effort $e e erted in the analysis of theaccounts in the econcilin& tems and prepare necessary ad:ustin& :ournalentries to reflect the correct $alances of the affected accounts at year end -he

(ccountin& %ffice may secure list@s from other departments of the Cityconcernin& the items that 4ere possi$ly included in the account

2 -he ad:ustment made in 6ecem$er 2011 on cost of land 4ith ta declarationunder the name of the City Government of Marikina in the amount of P"#0 2*1million de$itin& 9and account and creditin& the 9and econcilin& tems usin& themarket value of the parcels of land resulted in the understatement of the E8uityaccount $y the difference $et4een the market value and

c (d:ust the amount recorded in the ad:ustment made to effect the ac8uisitioncosts of the parcels of land 4ith ta declaration under the name of the City

* Several items in the Property and E8uipment accounts 4ithout ac8uisition costs

reflected in the Property, Plant and E8uipment Schedule amountin& to P' 11!million still have accumulated depreciation 4hich resulted in ne&ative net $ookvalues for the affected accounts


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contrary to Section 1"+ of C%( Circular 3o )2 *!+ dated %cto$er 20, 1))2


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totallin& P1 )#) million under the Special Education Fund 4hich have a ne&atin&effect resultin& in the understatement of the account Moreover, econcilin&

tems totallin& P#*",*1) 4hich are 4ithout details are included in the account$alance


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a impose and collect surchar&e and interest from $usiness esta$lishments 4hopay $usiness ta es after the Danuary 20 deadline or of each su$se8uent8uarter in compliance 4ith Section 1+! of ( #1+0> and

$ re8uire that related provisions of %rdinance 3o 12, s 1))! on theprocedures for the payment of license fees and fi in& the date of payment $eamended@revised to conform to Sections 1+# and 1+! of ( #1+0

13. (nalysis of the su$mitted copies of C7 2011 Purchase %rders disclosed that theCity outsourced the printin& of tarpaulins despite the City/s o4n e8uipment


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TA3#$ O' CONT$NTS

PART SU35$CT PA6$NO0

I AUDIT$D 'INANCIA# STAT$M$NTS

ndependent (uditor/s eport 1

Statement of Mana&ement esponsi$ility for Financial Statements *

Consolidated ;alance Sheet ' Consolidated Statement of ncome and E penses #

Consolidated Statement of Cash Flo4s 12

3otes to Consolidated Financial Statements 1*

II D$TAI#$D AUDIT 'INDIN6S AND R$COMM$NDATIONS

Financial and Compliance (udit 2#

III STATUS O' IMP#$M$NTATION O' PRIOR ($AR4S AUDITR$COMM$NDATIONS '+

I/ ANN$.$S

Anne7 A Consolidated ;alance Sheet


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ART I

AUDITED FINANCIAL STATEMENTS


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Republic of the PhilippinesCOMMISSION ON AUDITCommonwealth Avenue, Quezon City

IND$P$ND$NT AUDITOR4S R$PORT

1ON0 D$# R0 D$ 6U8MANCity Mayor City of Marikina

?e 4ere mandated $y the 1)!# Constitution to audit the accompanyin& financial statementsof the City of Marikina, 4hich comprise the ;alance Sheet as of 6ecem$er *1, 2011, and the

Statements of ncome and E penses and Cash Flo4s for the year then ended, and thesummary of si&nificant policies and other e planatory notes

Management’s Responsibility for the Financial Statements

Mana&ement is responsi$le for the preparation and fair presentation of these financialstatements in accordance 4ith &enerally accepted accountin& principles in the Philippinesand for such internal control as mana&ement determines is necessary to ena$le thepreparation of financial statements that are free from material misstatement, 4hether due tofraud or error

Auditor’s Responsibility

%ur responsi$ility is to e press an opinion on these financial statements $ased on our audit?e conducted our audit in accordance 4ith Philippine Standards on (uditin& -hesestandards re8uire that 4e comply 4ith ethical re8uirements and plan and perform the audit too$tain reasona$le assurance 4hether the financial statements are free from materialmisstatements

(n audit involves performin& procedures to o$tain audit evidence a$out the amounts anddisclosures in the financial statements -he procedures selected depend on the auditor/s

:ud&ment, includin& the assessment of the risks of material misstatement of the financialstatements, 4hether due to fraud or error n makin& those risk assessments, the auditor considers internal control relevant to the entity/s preparation and fair presentation of the

financial statements in order to desi&n audit procedures that are appropriate in thecircumstances (n audit also includes assessin& the accountin& principles used and thereasona$leness of accountin& estimates made $y mana&ement, as 4ell as evaluatin& theoverall presentation of the financial statements

?e $elieve that the audit evidence 4e have o$tained is sufficient and appropriate to providea $asis for our audit opinion


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5

Consoli)ate) 'inancial StatementsPa2es 9 : +

2


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3


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Consoli)ate) 'inancial StatementsPa2es 9 : +

See MS E cel File

4


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NOT$S TO 'INANCIA# STAT$M$NTS


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(9 S G(3• E pansion of P 9 E(9- $eneficiaries• (c8uisition of ne4 dental chairs and instruments to replace those

dama&ed $y B%ndoy• p&radin& of the various facilities in the Marikina Sports Center • Esta$lishment of 3an&ka ealth Center • -ransfer of alumpan& and Sta Elena ealth Centers to ne4 locations

(P(7(P((3 (- ((7 S(3• Esta$lishment of Marikina (nti 6ru& ($use Council %ffice• enovation of Marikina eha$ilitation Center • %r&ani.ation of 9ocal 6isaster isk eduction and Mana&ement Council• p&radin& of street li&hts in ma:or thorou&hfares• etoolin& of the local P3P 4ith the provision of ne4 vehicles and

e8uipments

(P(9 G (3@ (9 (S(3• nstallation of t4o


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0 Summa%" of Si2nificant Accountin2 Policies

;asis of Financial Statement Preparation-he consolidated financial statements have $een prepared in accordance 4ith theGenerally (ccepted State (ccountin& Principles and Standards

evenue and E pense eco&nitionSeparate re&istries are maintained to monitor appropriations, allotments and o$li&ations

-he a&ency uses accrual $asis of accountin& for e penses nder this method, alle penses are reco&ni.ed 4hen incurred and reported in the period to 4hich they relate-he a&ency adopts the modified accrual method of accountin& for eal Property -a es%ther ta es, fees and char&es and other revenues, as 4ell as nternal evenue (llotments,are accounted on cash $asis

Financial e penses such as interest e pense are separately classified from maintenanceand other operatin& e penses

nventoriesSupplies and materials purchased for inventory purpose are recorded usin& the perpetualinventory system e&ular purchases are coursed thru the inventory account andissuances thereof are recorded as they take place e cept those purchased out of pettycash fund 4hich shall $e for immediate use and not for stock Such case shall $e char&edimmediately to the appropriate e pense accounts Cost of endin& inventory of supplies andmaterials are computed usin& the movin& avera&e method

eceiva$leeal Property -a eceiva$le and Special Education -a eceiva$le are esta$lished at the

$e&innin& of the year $ased on P- (ccount e&ister@-a payers nde Card su$mitted $ythe -reasurer/s %ffice

Property and E8uipment-he costs of pu$lic infrastructures, such as roads, $rid&es and other infrastructures for &eneral pu$lic use are e cluded from the Property and E8uipment account and recorded inthe e&istry of Pu$lic nfrastructures

nfrastructures under construction are valued follo4in& the construction period theory

Property and e8uipment are carried at cost less accumulated depreciation For donatedland 4hich cost cannot $e determined, valuation 4ere made at market value

-he strai&ht line method of depreciation is used in depreciatin& property and e8uipment4ith estimated useful lives ran&in& from five


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Paya$lePaya$le accounts are reco&ni.ed and recorded in the $ooks of accounts only uponacceptance of the &oods@inventory and rendition of services to the a&ency

*0 Cash

-his account is $roken do4n as follo4s5

-++ 2010 General Fund

Cash in Aault ,,-?= 1,!'),'2)

Cash 6is$ursin& %fficers +


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Solomon amountin& to P1!2,0!2 *! for the Feedin& Pro&ram of Con&ressman MiroKuim$o and 6S?6Cash in Bank- ocal Currency! "ime #eposit account consists of e cess funds placed inPhilippine Aeterans ;ank and 9and ;ank of the Philippines Marcos i&h4ay ;ranch

90 Receivables

-his account includes the follo4in&5

-++ 2010

General Fund

6ue from %fficers and Employees +*?,@9? 1"1,!'+

9oans eceiva$le %thers * @,9 *2),'"!

eal Property -a eceiva$le **@,= + 2*+,)+",*#2

6ue from 3G(s * ,9?=, ,9-? #,*2+,*2#

*=?,+-> 2!!,)1',2'"

Special Education Fund

Special Education -a eceiva$le +? ,>= "0',)!"

+?*,*?-,*-> 12!,"0),)*1

-rust Fund

6ue from %fficers and Employees 9@,? + '),+21

9oans eceiva$le %thers *


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Mana&ement


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,*9 ,9=+ 2,"2#,)2#-he *repaid )nsurance represents the une pired portion of prepaid insurance for propertyand e8uipment of the City

Ad&ances to Contractors account represents 1" per cent mo$ili.ation fee &ranted to

S8uare Meter -radin& and Construction for the construction of Marikina Sports Park;uildin&

=0 Investments in Secu%ities

-his account consists of nvestments in Stocks amountin& to P1 1)! million and P*20,"'0for the General Fund and Special Education Fund, respectively, representin& 1"1,+1'preferred shares 4ith Meralco at P10 00@share

>0 P%ope%t" an) $Buipment

-his account consists of the follo4in&5

-++ 2010General Fund

9and +,-*>,* *,9,*> ,@?= #+,#)#,+1* ,@->,* 9,=?- 2,#+',+*0,*01 (ccumulated 6epreciation 9>,-?- +>,>+>, + 2",21',*21 -ransportation E8uipment *,+-


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Balance for+arded =+9,*+@,==< +!0,"**,#+0 Construction in Pro&ress *+,9>-,9 !*,212,0"! =9--, ** #+*,#'",!1! -rust Fund

%ffice E8uipment, Furniture and Fi tures ?+, +< 2+1,21" Machineries and E8uipment =*,++< #*,11" -ransportation E8uipment >?,= - 2!+,#20 %ther Property, Plant and E8uipment >*,>*+ 2!*,!*1 Pu$lic nfrastructures ?+,9@=,?+= +1,')#,+1# ? ,9- ,9@> +2,'02,')! (ccumulated 6epreciation ?@-,?** ?< +1,#01,)#* Construction in Pro&ress *,-*-,@ * ",''!,+)) ?9,=9 ,=>> +#,1"0,+#2-otal 3et ;ook Aalue *,? @,*?+, =+ *,++1,#"+,*#2

Most of the property and e8uipment 4ere ac8uired prior to C7 2002 -he depreciationreflected in the $ooks pertains to assets 4hich 4ere ac8uired $y the City from C7 2002 topresent For assets ac8uired prior to C7 2002, appraisal of PPEs 4ill $e undertaken toserve as $asis for the computation of depreciation ncluded in the account are propertyand e8uipment of Marikina otel amountin& to P2 "+1 million 4hich 4as declared lost $ythe General Services %ffice after the take over from Prime Glo$al last 3ovem$er 2+, 2011

and represents the value of lot located at ;aran&ay Sta Elena, Marikina City 4here theCity all is located and other lots ac8uired $y the a&ency

-he decrease of P1+2 0#1 million in Construction in *rogress , represents finished pro:ectsreclassified to account, Pu$lic nfrastructures

@0 Othe% Assets

-++ 2010 General Fund 9@,


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+-0 Cu%%ent #iabilities

-his account is $roken do4n as follo4s5

-++ 2010 General Fund

(ccounts Paya$le ++*, ?,-+ 1"1,#!),1#+ 6ue to %fficers and Employees +,=+*,-?= 1","+*,!)1

6ue to ; +,>? ,- *,!+1,#2'

6ue to GS S +-, 10,"!0,#!0

6ue to P(G ; G +,?++,>+@ 1,"!1,))* 6ue to P 9 E(9- =,>?+ ")+,0'1 6ue to %ther 3G(s ? ,- @, @< "',)"#,+)+ 6ue to 9G s ,??*,+ ,-?> 2#,"#' 6ue to GS S + 11,#+0 *,@>>,@ 9 2#,0++,#+1 -rust Fund

6ue to ; ?,=-= ',#++ 6ue to %ther 3G(s >,=+@,=* 11,#!2,!21 6ue to 9G s *,?*


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-he Accounts *ayable represents the amount due to suppliers and contractors for thedelivery of &oods and services for the year 2011 and prior years

-he #ue to $fficers and %mployees account si&nificantly consists of unclaimed salariesand terminal leave pay of city employees

-he #ue to B)R! (S)S! *A(-)B)( and *,) ,%A ", are the amounts paya$le for 4ithheldta es, premiums and loan payments -he follo4in& $alances of the amount due to national&overnment a&encies and &overnment o4ned and@or controlled corporations 4ere remittedon Fe$ruary 10, 20125

;ureau of nternal evenue 2,01*,"01Government Service nsurance System !,)01,#+!

ome 6evelopment Mutual Fund 1,"2",!!*Philippine ealth nsurance Corp +1#,"00 1*,0"!,+"2

-he #ue to $ther '(As represents the " per cent contri$ution of the City to MM6( andPriority 6evelopment (ssistance Fund of various senators and con&ressmen

-he #ue to ( s represents paya$le to various $aran&ays as part of advance payment of eal Property -a for 2011

-he (uaranty #eposits *ayable represents 10 per cent retention fee from contractors for various pro:ects implemented $y the a&ency

-he *erformance.Bidders.Bail Bonds *ayable are lia$ilities arisin& from the receipt of cashto &uarantee the performance of contract@court order

-he $ther *ayables account includes collection for the account of housin& $eneficiariesunder the Emer&ency elocation Center of 4hich #)! $eneficiaries have fully paid their $alances (d:ustment on the account 4ill $e made upon su$mission of the MarikinaSettlements %ffice and -reasurer/s %ffice of the list of fully paid $eneficiaries (lsoincluded are the account of private entities or institutions as $ond for e istin& pro:ects of contractors, and supervision and restoration deposits of the Philippine 9on& 6istance-elephone


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+ 0 Defe%%e) C%e)its

-his account consists of5

-++ 2010General Fund

6eferred eal Property -a ncome **@,= + 2*+,)+",*#2 %ther 6eferred Credits @,+-*,9-< 1","#!,+*0 *99,>@*,+ ? 2"2,"'',001Special Education Fund

6eferred Special Education -a ncome +? ,>9, +


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$ eduction

9i8uidation of Cash (dvance *,@*? 1","00

efund of Collection 2'+,2'+

Payment of Salaries @? ,--< #1),*'!

%ther M%%E * ?,-9+ 1"1,!00

eversion of (ccounts Paya$le ?+=,@*@ #,+'2,2"0epairs and Maintenance 1*1,#!)

nrecorded ssuance of nventory ?@,> ?

6epreciation E pense >-+ **+,*#"

Supplies E pense 1,*!*,1#2

Communication E pense *,- - ")'

nter fund -ransfer 1+,"1',0''

eclassification of (ccount +=, >?,>-= 2,)+2,""2

(d:ustment of PPE ??,??+ +@,* +",2+",))1

?ater4ays, (8ueducts, Sea4alls,iver ?alls and %thers +->,*++

%ther Pu$lic nfrastructures +?,>-=,++= >=, -+,,?>? ',*0*,'!1,)"!

+90 Ope%atin2 Income-he City reali.ed an a&&re&ate income of P1 "2' $illion or an increase of P"**,+*1 fromlast year/s P1 "2* $illion

%peratin& ncome consists of -a evenue of P+#) *0# million from P#0# "+# million lastyear resultin& to a decrease $y P2! 2+1 million or * )) per cent due to the reduction of

eal Property -a $y "0 per cent as per City %rdinance 3o !!, Series of 2010, andGeneral ncome of P!'" million from P!1+ 20" million last year 4ith an increase of P2! #)" million or * "* per cent Share in the nternal evenue (llotment increased $yP*! *"2 million or # 12 per cent

+< $7penses

-otal operatin& and financial e penses of P1 *'0 $illion re&istered an increase of P1'0 ')+million or 11 ## per cent from last year/s P1 200 $illion

24


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-he e penses 4ere classified as follo4s5 Current %peratin& E penses, P1 1)! $illion,Financial E penses, P" *+0 million, Su$sidies, 6onations and E traordinary E penses,P1*+ +)' million

+? #ocal Disaste% Ris& Re)uction Mana2ement 'un) #DRRM'

-he 96 MF represents the amount set aside $y the 9G to support its disaster riskmana&ement activities pursuant to ( 10121, other4ise kno4n as the BPhilippine 6isaster

isk eduction and Mana&ement (ct of 2010 -he amount availa$le and utili.ed durin&the year totaled P1'+,'*),!#+ and P!,#01,#1*, respectively, $roken do4n as follo4s5

Particulars (vaila$le (mount

tili.ed ;alance

Current 7ear (ppropriation5 2011

Kuick esponse Fund =? >,=-+,=+* +*=,=*>,+?*

+=0 Othe% Matte%s

Cit" 6ove%nment of Ma%i&ina %ep%esente) b" its Cit" T%easu%e%, Rica%)o #0 Cast%o/e%sus P%ime2lobal 1otels, Inc0, an);o% 5ohn Re7 T0 Tiu, in his capacit" as theCo%po%ate T%easu%e%, Inco%po%ato% an) membe%s of the 3oa%) of Di%ecto%s, #ei P0 Tiu,$%ic A0 AceEo, Ma%ian Michelle $0 Ma!o an) Dominic '%e)e%ic& D0 '%ancisco, in Thei% capacities as Inco%po%ato%s an) membe%s of the 3oa%) of Di%ecto%s, Civil Case No0++ +9== MF, Re2ional T%ial Cou%t, 3%anch = , Ma%i&ina Cit"0

-he a$ove entitled case is a complaint for Collection of Sum of Money 4ith 6ama&es 4ith (pplication for ?rit of preliminary (ttachment a&ainst a$ove named defendants for their failure to comply 4ith their o$li&ation under the Contract of 9ease dated (pril !, 2011 over the Marikina otel and Convention Center in the total amount of P11,#0),1") 1", $rokendo4n as follo4s5

P +,000,000 00 npaid rent from Dune to 3ovem$er 2011


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-he onora$le Court in its %rder dated Danuary 1*, 2012 &ranted the application for 4rit of preliminary attachment 4hich should only $e issued a&ainst defendant Prime&lo$al otels,

nc and re8uired the City to post a $ond in the amount of P2,000,000 o4ever, in its%rder, it declared that the amount due to the City should only $e P#,#0),1") 1"considerin& that Prime&lo$al paid the City P2M as advance rent and P2M as securitydeposit

-he possi$le contin&ent claims of the City 4ould $e in the amount of P#,#0),1") 1"


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ART II

DETAILED AUDITED FINDINGS AND

RECOMMENDATIONS


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D$TAI#$D AUDIT 'INDIN6S AND R$COMM$NDATIONS

'inancial an) Compliance Au)it

+0 Deficiencies note) in the au)it of P%ope%t" an) $Buipment

+0+0 Net va%iance amountin2 to P@?0 < million between the Result of Ph"sicalInvento%" an) balances pe% 3oo&s of the P%ope%t" an) $Buipment accountwas not %econcile) b" the 6ene%al Se%vices Office an) Accountin2 Office,thus, %en)e%in2 the account balance )oubtful0

n our previous audits, it has $een o$served that the variance $et4een thephysical inventory and $alance per $ooks of the Property and E8uipment account4as not reconciled $y the General Services %ffice


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?e also noted that a su$stantial amount of the $alances per $ooks of the variousproperty and e8uipment represents reconcilin& items 4hich amounted toP#*2,*2!,2"0 as of 6ecem$er *1, 2011 as sho4n in -a$le 2 econcilin& itemsrefer to those $alances of the accounts, 4hich cannot $e identified, or thoseaccounts 4ithout details

-a$le 2 J econcilin& items per Property and E8uipment classification andcorrespondin& (ccumulated 6epreciation

Property andEquipment

Reconciling ItemsAccumulated Depreciationas of December 31, 2011

eneral !und "E! #otal eneral !und "E! #otal

Land P323,667,528 P323,$$%,&2'LandImprovement 225,143,345 22&,1(3,3(& P 2,106,835 P 2,10$,'3&

Office Buildin ! 116,034,657 11$,03(,$&% 16,534,641 1$,&3(,$(1

"c#ool Buildin ! 5,475,11$ P 6,071,370 11,&($,('' 11,258,780 P31,$$6,572 (3,2&&,3&2

%ar&et! and"lau #ter#ou!e! 6,712,410 $,%12,(10 4,4$3,710 (,()3,%10

Ot#er "tructure! 14,253,201 84$,363 1&,102,&$( 21,083,083 21,0'3,0'3

Office '(uipment 17,878,188 635,805 1',&13,))( 2,75$,573 1,31$,082 (,0%',$&&I) '(uipmentand "oft*are $2,240 )2,2(0 16,8$1,4$1 5,166,458 22,0&%,)()Ot#er%ac#inerie! and'(uipment 434,2$8 (3(,2)' 2,4$3,227 8$8 2,()(,12&Ot#er)ran!portation'(uipment 478,000 (%',000 2,508,7$4 2,&0',%)(Ot#er Propert+and '(uipment 14,602,726 1(,$02,%2$ 33,845,76$ 3,800,441 3%,$($,210

P %0),1$(,((' P23,1$3,'02 P%32,32',2&0 P113,)%&,)0( P(2,2'3,(&0 P1&$,2&),3&(

?hile 4e reco&ni.e the efforts of the GS% and (ccountin& %ffice for thereconciliation of the said variances 4hich led to a si&nificant decrease fromP+)1,000,000 of the previous year to only P)+,2"2,2'* for C7 2011, the presenceof the econcilin& tems in the $alances per $ooks, not4ithstandin& theunreconciled variance, casts dou$ts on the accuracy@correctness of the recorded$alances Since the property items in the econcilin& tems cannot $e identified,these are possi$ly not included in the property records of GS%> thus, the totalvariance 4ill no4 total to P!2!,"!0,')* Moreover, the difference $et4een themarket value


32/55

?e reiterated our previous years/ recommendation that the City (ccountant, incoordination 4ith the GS%, fast track the analysis and reconciliation of the$alances per $ooks 4ith the property records (lso, for properties 4hose valuescannot $e determined, their estimated values as 4ell as their remainin& usefullives may $e assi&ned $y an appraisal committee

?e further recommended that e tra effort $e e erted in the analysis of theaccounts in the econcilin& tems and accordin&ly prepare ad:ustin& :ournalentries to reflect the correct $alances of the affected accounts at year end -he

(ccountin& %ffice may secure list@s from other departments of the Cityconcernin& the items that 4ere possi$ly included in the account

Mana&ement appreciated that their efforts to decrease the difference $et4eenthe $alance per $ook and physical inventory of the GS% has $een reco&ni.ed t4ill serve as their inspiration to fast track the analysis and on &oin&reconciliation Concernin& the reconcilin& items 4hich are classified under theProperty and E8uipment account 4ithout detailed $reakdo4ns, actual physicalinventory of the GS% is a $i& help to correct the account Mana&ement alsoreplied that as per properties 4hose values cannot $e determined, anindorsement letter had already $een sent to the appraisal committee to determinetheir estimated value as 4ell as their remainin& useful lives

+0 0 $%%oneous valuation of lan) a)Euste) in the Reconcilin2 Items account

n 6ecem$er 2011 an ad:ustin& entry 4as made on cost of land 4ith tadeclaration under the name of the City Government of Marikina de$itin& the 9andaccount and creditin& the 9and econcilin& tems amountin& to P"#0,2*0,!*'

econcilin& items refer to those $alances of the accounts, 4hich cannot $eidentified, or those accounts 4ithout details -hese accounts have $een in the$ooks since 200' or earlier

%ur verification of the said ad:ustin& entry disclosed that market values 4ereused to record the ad:ustment f these parcels of land 4ere confirmed to $e partof those previously de$ited under the 9and econcilin& tems account, themarket value should not $e credited $ut rather the purchase cost of the land$ecause the said market value is not yet the cost of these lands at that time the$alances 4ere recorded in the econcilin& tems account in 200' or earlier -hedifference $et4een the market value


33/55

items in the 9and account casts dou$ts on the accuracy@correctness of theaccount $alance as of 6ecem$er *1, 2011

?e recommended that Mana&ement5

a (naly.e the remainin& accounts in the 9and econcilin& tems>

$ Ensure that the parcels of land included in the ad:ustment made are thosepreviously included in the 9and econcilin& tems> and

c (d:ust the amount recorded in the ad:ustment made to effect the ac8uisitioncosts of the parcels of land 4ith ta declaration under the name of the City

+0*0 P%ope%t" an) $Buipment with !e%o acBuisition costs but with accumulate))ep%eciation

Several items in the Property and E8uipment accounts 4ithout ac8uisition costsreflected in the Property, Plant and E8uipment Schedule and as sho4n in -a$le *$elo4, still have accumulated depreciation 4hich resulted in ne&ative net $ookvalues for the affected accounts

-a$le * J Property and E8uipment 4ith .ero ac8uisition cost $ut 4ithaccumulated depreciation

AcBuisitionCost

Accumulate)Dep%eciation

Construction and eavy E8uipment 0 P #10,0+29and mprovement 0 2,#*1,!#*

- E8uipment and Soft4are 0 1"1,)"*Medical, 6ental and 9a$oratory E8uipment 0 1,!+#-echnical and Scientific E8uipment 0 '',"22%ther Machineries and E8uipment 0 *1,!*'Motor Aehicles 0 *+!, +'+%ther Property, Plant and E8uipment 0 #+,)02 Total P 9,++=,?


34/55

+090 Owne%ship fo% pa%cels of lan) totallin2 99,*?


35/55

0 Deficiencies note) in the au)it of the Invento%" account

0+0 Invento%" Repo%t not submitte)

E cept for %ffice Supplies nventory, the report on the result of physical count of the rest of the recorded inventory of supplies and materials of the City amountin&to P+*,"*),)0' as of 6ecem$er *1, 2011 4as not su$mitted, contrary to Section1"+ of C%( Circular )2 *!+ dated %cto$er 20, 1))2 4hich states that5

/Sec0 456 7 Annual )n&entory of Supplies or *roperty 7 "he local chief e3ecuti&e shall re1uire an annual physical in&entory of all supplies or property of the local go&ernment unit as of #ecember 84 of each year! to be conducted by office or department by acommittee of three 98: consisting of the representati&e of the local chief e3ecuti&e as chairman and the general ser&ices officer!municipal or Barangay treasurer! as the case may be! and thesupply accountable officer of the department or office concerned!as members0 "he in&entory report shall be submitted to the local chief e3ecuti&e and copy furnished the pro&incial! city or municipal auditor concerned02

-he veracity of the recorded $alance of the inventory account could not $eascertained due to the a$sence of the said eport and the correspondin&reconciliation of any variance $et4een the GS% and (ccountin& records

0 0 /a%iance between the Stoc& Ca%) an) Subsi)ia%" #e)2e%

Comparison $et4een the Su$sidiary 9ed&er


36/55

0*0 uestionable Unit Costs

-he unit cost of cement purchased durin& the year varied oddly from P1)" per $a& to P2#" per $a& 4hile the price of cement 4as sta$le in C7 2011 per the6epartment of -rade and ndustry price 4atch ?e noted that the said pricesvaried dependin& on the supplier

(lso, the unit costs for inventory items in -a$le " 4ere noted to $e 8uestiona$le

-a$le " J 6issimilar nit Costs

Desc%iptionUnit Cost

Pe% Accountin2Reco%)s Pe% Stoc& Ca%)s

-e Scre4 2 N

$ econcile variances $et4een the $alances per $ooks and the 4arehouserecords and make necessary ad:ustments to reflect the correct $alances of the inventory accounts> and

c 9ook into the varied prices of the same inventory items purchased fromdifferent suppliers

Mana&ement replied that re&ardin& the matter of the nventory eport 4hich4ere not su$mitted, this has $een coordinated 4ith the GS%, the officer inchar&e in the inventory of supplies and materials and they took note of it incompliance 4ith C%( Circular )2 *!+ -he dou$le codin& referrin& to the sameitem 4ill $e ad:usted once the (ccountin& has verified and reconciled 4ith theGS% Mana&ement also averred that the variance $et4een the Stock Card and

33


37/55

Su$sidiary 9ed&er resulted from non issuances or late issuances of theSummary of Supplies and Materials ssued (lso, another reason for thevariance is that the description codes used in Purchase %rders differ from thee istin& description codes that resulted to the creation of ne4 item codesMana&ement is no4 in the process of reconciliation and ad:ustment of the itemcodes in inventory account

*0 Non %eve%sal of the full" pai) accounts of the beneficia%ies of theRelocation P%o2%am of the Cit" of Ma%i&ina0

%ther Paya$les account of the General Fund 4ith a total amount of P*",#'!,#'+as of 6ecem$er *1, 2011 includes accounts totallin& P*',))#,1') or )# )0 per cent representin& collections from the $eneficiaries of the elocation Pro&ram of the City of Marikina as sho4n in -a$le +

-a$le + J (ccounts concernin& elocation Pro&ram of Marikina

Pa%ticula%s AmountE C J %ri&inator/s fee P 1!","12Emer&ency elocation Center *1,1"+,#2*

econcilin& tems *,+"',)1' Total P *9,@@=,+9@

-he paya$le account


38/55

the elocation pro&ram and that the -reasury %ffice has already furnished the (ccountin& %ffice copies of list of paid $eneficiaries 4ith the Certificate of FullPayment in order to update the $ooks Further, the three offices concernednamely the -reasury %ffice, City (ccountin& %ffice and the MS% a&reed that the-reasury %ffice 4ill periodically furnish the (ccountin& %ffice and the MS% a list of fully paid $eneficiaries and copies of Certificate of Full Payment for thenecessary ad:ustments in the $ooks to prevent the accumulation of paid@settledaccounts in the Paya$le account and for the MS% to transfer the -C- to the$eneficiaries 4ho have fully settled their accounts

90 #on2 outstan)in2 an) abno%mal balances

4.1 Reconcilin2 items on va%ious accounts : P,9=>

Aarious paya$le accounts sho4n in -a$le # include econcilin& tems totallin&P",'2!,'#! -hese accounts refer to 4ithheld premiums and loan payments toGS S, Pa& ; G and P 9 E(9- , 4hich remain unremitted to the saidinstitutions as of 6ecem$er *1, 2011 and real property ta payments 4hich areunder protest %n the other hand, econcilin& tems refer to those $alances of theaccounts that cannot $e identified or accounts 4ithout details -heseaccounts have $een in the $ooks since C7 200'

-a$le # J (ccounts 4ith econcilin& tems

6ene%al'un)

S$' Total

6ue to GS S P )02,*2) P "',0!2 P @


39/55

Guaranty 6eposits Paya$le account includes $alances totallin& P1,'12,+2"4hich have $een outstandin& for more than five years as of 6ecem$er *1, 2011as sho4n in -a$le ! Guarantee deposits, as disclosed in the 3otes to FinancialStatements, pertain to the 10 per cent retention fee from contractors for variouspro:ects implemented $y the City Said retention fees should $e due for releaseafter the defects lia$ility period, upon final acceptance of the 4orks Since thetransactions are dated from 200# and earlier and the pro:ects are alreadyoperational, all the transactions relative to the construction of these a&encyassets are deemed completed> thus, said retention fees should have already$een released

-a$le ! J 9on& outstandin& accounts

'un) Amount

General Fund P1,12),#20Special Education Fund 1#!,+!"-rust Fund 10',220-otal P1,'12,+2"

n addition, there are a$normal


40/55

-a$le ) J (&in& of dishonored checks

6ene%al 'un) Amount 9ess than 1 yr P *+',1!1 1 yr to 2 yrs !1,1'*

2 yrs to * yrs 2'*,*") * yrs to ' yrs ',!10,+!0 More than ' yrs 1,*!2,21*Special $)ucation 'un) 9ess than 1 yr 2,)1+ More than ' yrs "0*,)#1 Total P=,*>>,9?*

?e noted that there are cases 4herein the City -reasury %ffice stillackno4led&es checks as payment for ta es from ta payers 4hose checks havepreviously $een dishonored $y the $ank For C7 2011 accounts, the checkpayments of a certain ta payer have $een dishonored $y the $ank monthly fromDanuary to 6ecem$er 2011

-hese uncollected accounts representin& dishonored check payments deprivedthe City of resources needed to implement its pro:ects

?e recommended that Mana&ement e ert e tra efforts to collect the soonestpossi$le time, the accounts representin& dishonored checks

?e also recommended that Mana&ement discontinue acceptin& check paymentsfrom those 4hose checks have $een previously dishonored $y the $ank> thus,the City -reasury %ffice should maintain a master list of these ta payersMana&ement should like4ise adopt a policy re&ardin& the matter

Mana&ement replied that all cases of dishonored checks 4ere already referred tothe City 9e&al %ffice for appropriate action e&ardin& C7 2011 accounts 4hereinthe check payments of a certain ta payer have $een dishonored $y the $ankmonthly from Danuary to 6ecem$er 2011, the said condition transpired due to theCompromise (&reement entered into $y the complainant


41/55

Section 12 a of epu$lic (ct 10121 < ( 10121= other4ise kno4n as B-hePhilippine 6isaster isk eduction and Mana&ement (ct of 2010 , provides that a9ocal 6isaster isk eduction and Mana&ement %ffice


42/55

For C7 2011, the City Government of Marikina appropriated the amount of P#+,01#,**0 or " per cent of its estimated revenues from re&ular sources as itsCalamity Fund or 96 MF, #0 per cent or P"*,212,1*1 of the fund is for miti&ationand disaster preparedness and the *0 per cent or P22,!0",1)) for the Kuick

esponse Fund

-he City e pended only P!,'*',212 or 11 10 per cent of its 96 MF for C7 2011


43/55

SARONo0

Pu%pose (ea% 6%ante)

Amount6%ante)

3alance asof Dec0 *+,

-++

3o dataavaila$le

Medicare covera&e of ndi&ent families, Ga4adalin&a and Aarious e penses 200! P ',000,000 P2,+12,1##

0'0'' ;ike 9oan 200' "00,000 *0),2"0

0+ 0#')* 2,000 pcs Marikina ;ooks200# "00,000 !0,000

3o dataavaila$le for4arded $alance 200" 3ot availa$le !#,""'

0! 0'"20 6epEd Fla&pole ni&hts of Colum$us Q vare penses

200! +,')2,000 2,1!),'*1

0'0+"! 3o data avai la$le200' "00,000 200,000

0* 0++* 3utrition Cookin& 6emonstration Community3utrition Center

200' **0,000 1"0,0'*

0! 01"0" various e penses200! *,200,000 '2,1*!

P +


44/55

>0 Su%cha%2e an) inte%est impose) on late pa"ments of business ta7 we%e notin acco%)ance with the p%ovisions of Sections +?= an) +?> of RA =+?-%esultin2 in financial loss

Section 1+! of the 9ocal Government Code < ( #1+0= provides that J

/"he sangunian may impose a surcharge not e3ceeding ;5< of theamount of ta3es! fees or charges not paid on time and an interest at the rate not e3ceeding ;< per month of the unpaid ta3es! fees or charges including surcharges! until such amount is fully paid but inno case shall the total interest on the unpaid amount or portionthereof e3ceed 86 months02

%rdinance 3o 12, series of 1))! 4as enacted prescri$in& the procedure for thepayment of license fees in the City of Marikina and fi in& the date thereof -heCity imposed and computed surchar&es and interests on late payments of $usiness ta es $ased on the # days &race period from receipt of notice of assessment instead of the Danuary 20 deadline as re8uired under Section 1+# of

( #1+0

6urin& the month of Fe$ruary 2011, $usiness esta$lishments, 4ho paid $eyondthe Danuary 20 deadline, per records of the ;usiness Permit and 9icensin& %fficenum$ered a$out 11,"0! %ut of these, !# 4ere sampled to have not $eensu$:ected to surchar&e and interest 4hich amounted to a$out P",!2+,"!#

-he non imposition of surchar&es and interests $ased on the Danuary 20deadline re8uired under Section 1+# of ( #1+0 deprived the City of additionalresources for its operations and pro:ects

?e recommended that Mana&ement5

a impose and collect surchar&e and interest from $usiness esta$lishments 4hopay $usiness ta es after the Danuary 20 deadline or of each su$se8uent8uarter in compliance 4ith Section 1+! of ( #1+0> and

$ re8uire that related provisions of %rdinance 3o 12, s 1))! on theprocedures for the payment of license fees and fi in& the date of payment $eamended@revised to conform to Sections 1+# and 1+! of ( #1+0

Mana&ement replied that Section 1+! of ( #1+0 states that the San&&unianmay impose surchar&e not e ceedin& 2 per cent per month of the unpaid ta es,fees or char&es includin& surchar&es, until such amount is fully paid $ut in no

case shall the total interest on the unpaid amount or portion thereof e ceed *+months -he provision of the 9ocal Government Code is not self e ecutin& andneeds an ena$lin& ordinance to enforce it Philippine 9a4 on 9ocal Government-a ation provides that BSurchar&es and penalties are collecti$le only if soe pressly imposed in an %rdinance, either specifically or &enerally, and only atrates provided for, 4hich may $e less than 2" per cent in the case of surchar&es,or 2 per cent per month in the case of interest char&es n vie4 of the fore&oin&,the City Council enacted %rdinance 3o 12, series 1))! prescri$in& theprocedure for the payment of license fees in the City of Marikina and fi in& the

41


45/55

date thereof -here is no manifest discrepancy in the provisions of 9ocalGovernment Code and the %rdinance that &ives life to it For it is 4ithin thepo4er of the San&&unian to impose penalty and surchar&e at any rate providednot to e ceed t4o per cent and 2" per cent respectively, they can also provide for the manner of its imposition

Mana&ement further commented that the ;P9%/s contri$ution to the coffer of thecity has consistently improved despite the fact that there 4ere t4o ordinancesenacted $y the City Council that &ives reprieve to the ta payer -he $usiness tarates $ein& used is still that of a municipality

%ur re:oinder5

?hile it is 4ithin the po4er of the San&&unian to provide for the manner of theimposition of surchar&es and interests on late payments of $usiness ta es, theenacted ordinance should $e ali&ned 4ith the la4 specifically on Section 1+# of

( #1+0 -his 4ill encoura&e the ta payers to pay on time

@0 Deficiencies note) in the pu%chase of ta%paulins

(nalysis of the su$mitted copies of C7 2011 Purchase %rders disclosed that theCity outsourced the printin& of tarpaulins despite the City/s o4n e8uipment


46/55

?e also noted that $id documents and other pertinent supportin& documents4ere not attached to the dis$ursement vouchers and said deliveries of tarpaulinmaterials 4ere char&ed directly to e pense

?e recommended that Mana&ement properly plan its purchases to ensureavaila$ility of supplies in sufficient 8uantities and to avoid overlappin& of transactions ;id documents should $e attached to the dis$ursement vouchersand the purchased tarpaulin materials should $e recorded to the inventoryaccount ?e also recommended that Mana&ement su$mitaccomplishment@output of the in house tarpaulin printer from May to Duly 2011

Mana&ement su$mitted the re8uired accomplishment@output of the in housetarpaulin printer for C7 2011 on May ), 2012

%ur re:oinder5

%ur verification of the su$mitted accomplishment@output sho4ed that thetarpaulins printed in house for the period from Danuary to (u&ust 2011 includedsome tarpaulins that 4ere also outsourced in various dates from March to (u&ust2011

+-0 Copies of Cont%acts to2ethe% with all suppo%tin2)ocuments we%e not submitte) to the Cit" Au)ito%4s Office on time

C%( Circular 3o 200) 001 dated Fe$ruary 12, 200) states that5

/Section 804 Contracts 7

80404 =ithin fi&e +orking days from the e3ecution of a contract by the

go&ernment or any of its subdi&isions! agencies or instrumentalities!including go&ernment-o+ned and controlled corporations and their subsidiaries! a copy of said contract and each of all the documentsforming part thereof by reference or incorporation shall be furnished to the Auditor of the agency concerned0 )n case of agenciesaudited on an engagement basis! submission of a copy of thecontract and its supporting documents shall be to the Auditor of themother agency or parent company as the case may be02

t has $een o$served that contracts and its supportin& documents 4ere notsu$mitted 4ithin five days after perfection evie4 of the su$mission of contracts sho4ed that the delay ran&ed from 1+ days to 1+0 days

-he delayed su$mission of the contracts hinders the conduct of a timely revie4,evaluation and determination of the reasona$leness of price of the transactions

?e recommended that Mana&ement re8uire the officials concerned to su$mit onthe prescri$ed time as stated under C%( Circular 3o 200) 001 copies of contracts and to set up a mechanism in the routin& of the re8uired documents

43


47/55

Mana&ement replied that they are e haustin& all strate&ies to ensure fullcompliance and those ne4 strate&ies 4ill $e implemented in response to therecommendation in the routin& of documents -he %ffice of the City

(dministrator also prepared a Memorandum dated March 1), 2012 to alldepartments concerned remindin& strict compliance to the stated C%( Circulars

++0 Compliance to laws, %ules an) %e2ulations on 6en)e% an) Development

Doint Circular 3o 200' 1 dated (pril ", 200' issued $y the 6epartment of ;ud&etand Mana&ement, the 3ational Economic and 6evelopment (uthority and the3ational Commission on the role of Filipino ?omen defines Gender and6evelopment


48/55

+ 0 Compliance with ta7 laws

%ut of the ta es totallin& P"#,""2,1!) +' 4hich 4ere 4ithheld from employees,suppliers and contractors in C7 2011, the City has remitted the amount of P"","00,!*' )1 durin& the year -he $alance of P2,0"1,*"' #* as of 6ecem$er *1, 2011 4as remitted in Fe$ruary 2012

+*0 Summa%" of unsettle) suspensions, )isallowances an) cha%2es

Suspension Notices of Disallowance

Cha%2e

;alance, 6ecem$er *1, 2010 0 0 0 (dd5 ssuances 2,+0*,)0) #" 0 0

2,+0*,)0) #" 0 09ess Settlements5 Current ssuances 2,+0*,)0) #" 0 0 Prior 7ears/ ssuances 0 0 0

2,+0*,)0) #" 0 0;alance, 6ecem$er *1, 2011 0 0 0

-he suspension amountin& to P2,+0*,)0) #" 4as issued in (u&ust 2", 2011 dueto non su$mission of re8uired documents, $ut 4as su$se8uently settled in6ecem$er 2), 2011

45


49/55

ART III

STATUS OF IM LEMENTATION OF RIOR

YEAR’S AUDIT RECOMMENDATIONS


50/55

STATUS O' IMP#$M$NTATION O' PRIOR ($AR4SAUDIT R$COMM$NDATIONS

%f the 12 audit recommendations contained in the previous year/s (nnual (udit eport, si 4ere fullyimplemented, five 4ere partially implemented and one 4as not acted upon $y the a&ency

Audit*bser+ation Recommendation Ref

-anagementAction

"tatus ofImplementation

Reason forPartial./on

implementation

1 )#ere *a! a difference ofP6$1 0$ million -et*een t#ePropert+, Plant and'(uipment .PP'/ -alanceper -oo&! and t#e p#+!icalinventor+, t#u! renderin t#e!aid amount dou-tful )#i! *a! due to t#e failure of t#e

eneral "ervice! Office. "O/ and t#e ccountin

Office to reconcile t#eInventor+ eport *it# t#eaccountin and propert+record!

e !tron l+ recommend t#att#e it+ ccountant, incoordination *it# t#e "O,fa!t trac& t#e reconciliation oft#e Inventor+ eport *it# t#e-alance per -oo&! andpropert+ record! It i! al!orecommended t#at for t#o!epropertie! *#o!e value!cannot -e determined, t#eir

e!timated value! a! *ell a!t#eir remainin u!eful lifema+ -e a!!i ned -+ anapprai!al committee

2010 econciliation-et*een t#e

ccountin Officeand t#e eneral"ervice! Office i!on oin up to t#etime t#at t#e+ *illcome up *it# t#e!ame -alance per-oo&! and

p#+!ical inventor+

Partiall+implemented

eiterated inindin o 1 1

)#ere *a! adifference ofP$6,252,243 00-et*een t#e PP'-alance per -oo&!and t#e p#+!icalinventor+ a! of9ecem-er 31, 2011:erification i! !till on

oin

2 ;npaid o-li ation! in 2007 and prior +ear!amountin to P6 78 million, *#ic# did not #ave an+!upportin document! toprove validit+ and e


51/55


-anagementAction



implementation

4 a e!, allo*ance! and-enefit! of volunteer! andnon re ular emplo+ee!

totalin P20 50 million *ereerroneou!l+ c#ar ed a ain!tt#e allotment for Per!onal"ervice! .P"/, t#ere-+over!tatin t#e P" andunder!tatin t#e%aintenance and Ot#erOperat in '


52/55


-anagementAction



implementation

7 )#e nnual ProcurementPlan . PP/ t#at !upportedt#e approved nnual Bud et

for t#e procurement ofood! and infra!tructurepro=ect! did not contain t#edetailed li!t of ood! andinfra!tructure pro=ect! to -eprocured durin t#e +ear,contrar+ to "ection 7 of $184

It i! recommended t#at t#edepartment #ead! -ere(uired to !u-mit to t#e Bid!

and *ard! ommittee .B /"ecretariat t#eir individualPro=ect Procurement%ana ement Plan! .PP%P!/!#o*in t#e detailed li!t of

ood! and infra!tructurepro=ect! to -e procured durint#e +ear )#e!e PP%P! !#all-e con!olidated -+ t#e B"ecretariat into an nnualProcurement Plan to !upportt#e appropriated amount int#e approved nnual Bud et

2010)#e B"ecretariat!u-mitted t#e

revi!ed PP inaccordance *it#"ection 7 of $184

ull+ implemented

8 )#e it+ #a! +et to come up *it# a clear cut polic+ anddetailed uideline! in t#e

rant of financial a!!i!tanceto (ualified con!tituent! andto PeopleA! and on

overnmental or ani@ation!

It i! recommended t#at polic+uideline! in t#e rant of

financial a!!i!tance conform *it# "ection 36 and pertinentportion! of "ection 458 .5/ of

7160

2010)#e it+ #a!alread+ come up *it# '


53/55


-anagementAction



implementationcompre#en!ive and te!teddi!a!ter recover+ and-u!ine!! continuit+ planDand formal policie! and

procedure! to perform-ac&up and to provideoff!ite !erver!?!tora e ofdata file!, data-a!e!,pro ram anddocumentation, ma+ re!ultin Information )ec#nolo +.I)/ lo!!e!

carefull+ !tud+ t#econtin enc+ plan pre!entedto t#em -+ t#e %I" inorder to prevent t#e ri!&! of

lo!! or dama e to data file!,#ence, en!urin t#econtinuou! operation of t#emana ement information!+!tem

"+!tem and allenter en!ured

t#at t#e+ #avete!ted -ac&up and

recover+ plan inca!e di!a!teroccurred )#e+#ave t#e Bu!ine!!

ontinuit+ PlanLi!t )#e B %"

"O prioriti@edt#e %I" on t#eu!e of enerator!in ca!e of po*erfailure )#ere areper!onnela!!i ned to t#eattendance &io!&mac#ine in ca!eof malfunction)#e+ #ave !et upprocedure! forpo!t di!a!terrecover+ andnormali@ation ofI" !ervice andoptimi@ed t#ee


54/55

ART IV

ANNEXES


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Anne7es, pa2es

Marikina City Audit Report

Documents

Transcript of Marikina City Audit Report