More than P600,000 worth of disbursements in 2023 have yet to be recorded in the books of accounts of the Bagamanoc municipal government after the Office of the Mayor failed to forward the vouchers and supporting documents to the treasurer’s office.
In its audit of LGU transactions for the year, the Commission on Audit found that an initial 13 disbursement vouchers amounting to P838,736.51 had gone unrecorded due to the inability of the Municipal Treasurer’s Office to forward the same to the accounting office pursuant to Sec. 44 of the New Government Accounting System (NGAS) Manual for LGUs.
This affected the presentation of the cash, equity and expense accounts in the local government’s financial statements as of Dec. 31, 2023.
The report said the missing checks, charged to the Trust Fund and General Fund. were debited to the account of the LGU in January, March, April, July, August, October, November and December, 2023, including two checks worth a total of over half a million pesos.
During the audit, the municipal accountant told the COA team that the checks were not recorded as disbursements because the DVs and its supporting docs were not forwarded to her office by the acting treasurer.
“Since the checks were not in possession of the municipal accountant, the DVs were not forwarded to the audit team and were not subjected to post audit, thereby preventing the examination of transactions to determine their propriety, legality and validity,” the COA stated.
On the other hand, the acting treasurer explained at the time that the unsubmitted DVs had yet to be forwarded by the Office of the Mayor.
During the exit conference held last year, both LGU officials informed the team that as of April 25, five of the missing DVs with a total value of P226,497.68 have already been transmitted to COA.
The audit team recommended to the local chief executive that the acting treasurer be instructed to submit the remaining eight (8) vouchers and supporting documents to the accounting office and to strictly adhere to the check disbursement process.
In the same report, it was discovered that vouchers and documents of P3.46 million in checks drawn against the LGU bank account were not submitted to the audit team, precluding the conduct of auditorial review of said expenses.
In another significant finding, the government watchdog discovered that P1.38 million in funds transferred by source agencies to LGU Bagamanoc as of Dec. 31, 2023 were not fully utilized for its intended purpose.
The unused funding consisted of P300,000 from the DENR’s Environmental Management Bureau (EMB) regional office for the Establishment of Materials Recovery Facility (MRF) and Procurement/Fabrication of Solid Waste Management (SWM) Equipment at barangay San Isidro and P1,085,839.40 out of P3.65 M released by Bureau of Fisheries and Aquatic Resources (BFAR) regional office for the Establishment of Marine Reserve and Fish Sanctuary in coastal barangays.
The audit team, who also learned that the LGU did not have copies of the memoranda of agreement (MOA), was told by concerned personnel that the projects were put on hold due to opposition from residents.
“If indeed the constituents are against the projects, the LGU could have documented their opposition and requested the source agencies for possible realignment/reprogramming to a replacement project identified by the barangays or if not, return the funds to the source agencies,” the Commission stressed.
The local chief executive indicated to the team that the LGU intends to fully implement the MRF project but would return the funding for Marine Reserve and Fish Sanctuary.
In another finding, the report said four Supplemental Budgets with an aggregate amount of P12.05 million enacted by the LGU presented 2022 savings as the source of funds but did not identity details of the savings realigned for various expenditures, programs and projects.
Two of the Supplemental Budgets also had no attached Sangguniang Bayan resolution approving the Supplemental Annual Investment Program for the Supplemental Appropriation.
The management later submitted the required documents, which were subjected to validation in audit.
With regards to the implementation of projects under the Local Disaster Risk Reduction and Management Fund (LDRRMF) and the 20% Development Fund for CY2023, the Bagamanoc LGU was commended for its substantial accomplishment.
Seven LDRRMF projects were implemented that year for 70% accomplishment, the report stated, including additional funding for the construction of the Emergency Operations Center, procurement of warning and communications equipment, stockpiling of relief goods and medicines, and the Disaster Preparedness/Capability Program, among others.
In the 20% DF, 17 out of 18 programs and projects worth nearly P15 million were implemented, as the LGU posted a 94% accomplishment while utilizing 72% of appropriations.
Among the completed PPAs were the construction of reservoir at Salvacion and repair of intake tank, construction of public comfort room at Poblacion and Bugao, abaca/banana production, rice production, provision of Bantay Dagat motorized banca, construction of irrigation system at San Vicente, improvement of public market at Sta. Teresa, Rehab of Irrigation system at town proper, construction of Bacak seawall, drainage system rehab at town proper, repair of slope protection at Salvacion, reforestation of upland and coastal forest, procurement of garbage dump truck and other SWM equipment.