Republic of the Philippines

COMMISSION ON AUDIT
Regional Office No. VIII

AUDIT REPORT

ON

BARANGAY GUINDAPUNAN
(Barangay)

JAVIER
(Municipality)

LEYTE
(Province)

For the Years Ended December 31, 2019 to December 31, 2022
 REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
REGIONAL OFFICE NO. VIII
LGAS C – Leyte II and Biliran Province
Provincial Satellite Auditing Office (PSAO)
Baybay City, Leyte

September 27, 2023

HON. RONNIE U. MORABE

Punong Barangay
Barangay Guindapunan
Javier, Leyte

Dear Punong Barangay Morabe:

We are pleased to transmit the report of our Auditor on the results of her audit on
the accounts and operations of Barangay Guindapunan, Javier, Leyte, for the years ended
December 31, 2019, 2020, 2021 and December 2022 pursuant to Section 2, Article IX-D
of the Constitution of the Philippines, and Section 43(2) of Presidential Decree (PD) No.
1445, otherwise known as the Government Auditing Code of the Philippines.

The audit was conducted to ascertain the propriety of financial transactions and
compliance of the barangay to prescribed rules and regulations. It was also made to
ascertain the accuracy of the financial records and reports, as well as the fairness of the
presentation of the financial statements.

The Auditor render a qualified opinion on the fairness of the presentation of the
financial statements due to the audit exceptions noted as indicated in the Independent
Auditor’s Report.

We request that the recommendations contained in Part II and those which remain
unimplemented in Part III of the attached report be acted upon immediately. We will
appreciate being informed of the action(s) taken thereon by submitting the duly
accomplished Agency Action Plan and Status of Implementation report.
 We acknowledge the cooperation and support extended to the Audit Team during
the audit by the officials and staff of Barangay Guindapunan and the Municipal
Accountant’s Office of Javier, Leyte.

Very truly yours,

For the Commission On Audit

By:

SANTIAGO P. SEÑASE
State Auditor IV
OIC-Supervising Auditor

Copy furnished:

The Honorable Mayor, Javier, Leyte

The Sangguniang Bayan, Javier. Leyte
The Regional Director, COA, Region VIII, Candahug, Palo, Leyte
 Barangay Guindapunan
Municipality of Javier
Province of Leyte

AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For Calendar Year 2022 and Prior Years
As of ________________

Agency Action Plan Reason

Target for
Action
Implementation Status of Partial /
Audit Persons Taken /
Audit Date Imple Delay /
Ref Recommend- Action / Dept. Action
Observations ment- Non-
ations Plan Responsi To Be
ation Implem
-ble From To Taken
ent-
ation

Agency Signing Officer:

________________________________ Date __________________

Punong Barangay

Note: Status of Implementation may either be (a) Fully Implemented, (b) On-going, (c) Not Implemented,
(d) Partially Implemented, or (e) Delayed
 EXECUTIVE SUMMARY

Introduction

Barangay Guindapunan is one of the upland barangays of the Municipality of

Javier. It has a total land area of 1.116 hectares.

An audit was conducted on the accounts and operations of Barangay Inayupan,

Javier, Leyte, for CY 2019 to CY 2022 with particular emphasis on cash and property,
plant and equipment accounts, utilization of the 20% Development Fund, SK Fund,
Barangay DRRM Fund and Fund Transfers.

The audit was conducted in accordance with laws and applicable generally
accepted auditing standards. The audit included examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. Verification, analysis of
accounts, and other procedures considered necessary were conducted by the team during
the audit.

Financial Highlights

The Barangay’s assets, liabilities and equity as of December 31, 2022 and income
and expenses, in comparison with that in CYs 2021, 2020, and 2019, are as follows:

Account 2022 2021 2020 2020

Assets 7,052,831.33 6,581,091.94 5,733,934.49 4,861,432.18
Liabilities 653,506.39 378,214.76 319,802.36 396,699.74
Equity 6,399,324.94 6,202,877.18 5,414,132.13 4,464,732.44
Income 2,071,886.27 1,512,022.86 1,410,724.91 1,259,322.20
Expenses 1,544,704.75 922,922.81 939,866.53 854,416.24

Appropriations, obligations and the remaining balances for calendar year 2022 in
comparison with CYs 2021, 2020 and 2019 are tabulated hereunder:

Particulars 2022 2021 2020 2019

Appropriations 2,072,619.00 1,502,608.00 1,412,097.00 1,240,597.00
Allotments 2,072,619.00 1,502,608.00 1,412,097.00 1,240,597.00
Obligations 1,544,704.75 922,922.81 939,866.53 854,416.24
Balance 527,914.25 579,685.19 472,230.47 386,180.76
Funds Received from Other Agencies
NGAs - - -
LGUs -
Independent Auditor’s Report on the Financial Statements
 The Auditor rendered a qualified opinion on the accompanying financial
statements of the Barangay Guindapunan, Javier, Leyte as of December 31, 2022 due to
the exceptions as stated in the Independent Auditor’s Report and as discussed in Part II of
the report.

Summary of Significant Observations and Recommendations:

In addition to the exceptions cited above, the significant audit observations with
the corresponding recommendations were as follows:

1. Three projects identified to be priority development projects for CY 2020 to

2022 totaling ₱2,074,208.20 remained unimplemented as of December 31,
2022.

We recommended that the Punong Barangay implement all the projects

appropriated under 20% Development Fund so that funds are utilized to its
optimum to help achieve the desirable socio-economic development and
environmental outcomes of the Barangay.

2. Disbursements totaling ₱43,915.10 from CY 2020-2022 were paid from prior

year’s unexpended DRRMF despite not being included in the LDRRMF
Investment Plan for CYs 2020, 2021 and 2022.

We recommended that the BDRRMO, through the Punong Barangay, convene the
LDRRM Council and prepare the LDRRMFIP which also includes PPAs to be
paid from previous years unexpended DRRMF annually as basis for the use of the
LDRRMF based on the priority programs, projects and activities included in COA
Circular 2012-002.

We also recommended that the Punong Barangay, the Chairman Committee on

Appropriation, and Barangay Treasurer stop processing disbursements from
LDRRMF if said disbursements is not included in the approved LDRRMFIP.

3. Funds appropriated for programs and projects for Senior Citizens and
Persons with Disabilities (PWD) for CY 2020 and 2021 were not equivalent to
1% of the barangay’s IRA.

We recommended that the Punong Barangay and its Council appropriate funds in
its annual budget for programs and projects benefitting Senior Citizens and
Persons with Disabilities (PWD) at an amount of no less than 1% of the annual
IRA as required by the Expanded Senior Citizen Act, R.A. No. 9994.

4. Funds appropriated in the CY 2020 and 2021 budget of the barangay for the
implementation of programs, projects and activities for the protection of
children were not equivalent to 1% of the barangay’s IRA.
 We recommended that the Punong Barangay include in its annual budget an
appropriation equivalent to 1% of its IRA intended for the protection and welfare
of the children in the barangay, identify and implement the programs, projects and
activities using the said fund pursuant to RA 9344.

5. The Barangay Treasurer did not deposit her collections regularly, intact and
on time.

We recommended that the Barangay Treasurer deposit the full amount of

collections at the Barangay’s authorized government depository bank daily,
weekly or once the collections reach ₱5,000.00, whichever is applicable.

Summary of Total Suspensions, Disallowances and Charges

The Barangay has no unsettled suspension, disallowance and charges as of

December 31, 2022.

Status of Implementation of Prior Years’ Unimplemented Audit Recommendations

Of the 24 audit recommendations contained in the CY 2016-2018 and prior years’

Audit Report on Barangay, 8 were fully implemented while 16 remained not
implemented.
 TABLE OF CONTENTS

Page
No.
PART I - Audited Financial Statements

Independent Auditor’s Report 1

Statement of Management’s Responsibility for 3
Financial Statements
Statement of Financial Position 4
Statement of Changes in Net Assets/Equity 6
Statement of Financial Performance 7
Statement of Cash Flows 8
Statement of Comparison of Budget and Actual Amounts 10
Notes to Combined Financial Statements 15

PART II - Audit Observations and Recommendations 22

PART III - Status of Implementation of Prior Years’ Audit

Recommendations 36
 Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. VIII
Candahug, Palo, Leyte

INDEPENDENT AUDITOR’S REPORT

Hon. Emmanuel M. Abueva

Punong Barangay
Barangay Binulho
Javier, Leyte

Qualified Opinion

We have audited the financial statements of Barangay Binulho, Javier, Leyte which
comprise the Statement of Financial Position as of December 31, 2020, December 31,
2021 and December 2022 and the Statements of Financial Performance, Statement of
Changes in Net Assets/Equity, Statement of Cash Flows and Statement of Comparison of
Budget and Actual Amounts for the years then ended, and notes to the financial
statements including a summary of significant accounting policies.

Basis for Qualified Opinion

The Due to Local Government Unit (LGU) was overstated by ₱300,000.00 while income
was understated by ₱274,869.00 since fully implemented project with corresponding
Fund Utilization Report (FURs) sourced from Financial Assistance given by the
Municipality of Inopacan was not recognized as income and not deducted from the Due
to LGU account. In addition, the Construction in Progress (CIP) – Infrastructure Assets
was overstated by ₱737,201.00; Buildings was understated by ₱666,304.00 while Other
Structures was understated by ₱116,897.00 since the cost of completed project charged
to 20% Development Fund still remained in Construction in Progress (CIP) –
Infrastructure Assets and were erroneously not recorded as PPE totaling ₱737,201.00 and
₱46,000.00 respectively. Moreover, Food Supplies Expense was overstated by
₱90,040.00 while Welfare Goods Expense was understated by the same amount since the
distribution of various relief goods to the families/household affected by calamities
charged to the Local Disaster Risk Reduction Management Fund amounting to
₱90,040.00 were erroneously recorded as Food Supplies Expense instead of Welfare
Goods for Distribution upon initial recording and Welfare Goods Expense upon
distribution.

We conducted our audit in accordance with the International Public Sector Standards of
Auditing (IPSSA). Our responsibility under those standards are further described in the

1
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the agency in accordance with the ethical requirements that are
relevant to our audit of the financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.

Responsibilities of Management and those Charged with Governance for the Financial
Statements

Management is responsible for the preparation and fair presentation of these financial
statements in accordance with generally accepted accounting principles and for such
internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or
error.

Those charged with governance are responsible for overseeing the barangay’s financial
reporting process.

Auditor’s Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free of material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.

For the Commission on Audit

By:

MA. SHIELA T. ELMIDO

State Auditor II
OIC- Audit Team Leader

September 27, 2023

2
3
 Republic of the Philippines
Province of Leyte
Municipality of Javier
Barangay Binulho

STATEMENT OF FINANCIAL POSITION

GENERAL FUND
As at December 31, 2022
(With Comparative Figures for CY 2021 & 2020)

Note 2022 2021 2020

ASSETS
Current Assets
Cash and Cash Equivalents 3 5,159,460.12 2,855,458.64 2,604,382.81
Receivables
Total Current Assets 5,159,460.12 2,855,458.64 2,604,382.81

Non-Current Assets
Property, Plant and Equipment 4 6,170,063.24 6,015,807.80 6,181,647.33
Total Non-Current Assets 6,170,063.24 6,015,807.80 6,181,647.33

Total Assets 11,329,523.36 8,871,266.44 8,786,030.14

LIABILITIES
Current Liabilities
Payable Accounts 5 206,740.00 0.00 0.00
Inter- Agency Payable 6 211,069.94 179,750.26 (1,339.74)
Trust Liabilities 7 402,809.44 0.00 0.00
Total Current Liabilities 820,619.38 179,750.26 (1,339.74)

Non-Current Liabilities
Payable Accounts
Inter- Agency Payable
Trust Liabilities
Total Non-Current Liabilities 0.00 0.00 0.00

Total Liabilities 820,619.38 179,750.26 (1,339.74)

NET ASSETS / GOVERNMENT 8 10,508,903.98 8,691,516.18 8,787,369.88

4
EQUITY

Total Liabilities and Net Assets /

Government Equity 11,329,523.36 8,871,266.44 8,786,030.14

5
 Republic of the Philippines
Province of Leyte
Municipality of Javier
Poblacion Zone II

STATEMENT OF CHANGES IN NET/ASSETS/EQUITY

GENERAL FUND
For the Year Ended December 31, 2022
(With Comparative Figures for 2021, 2020 & 2019)

Accumulated Accumulated Accumulated Accumulated

Surplus / Surplus / Surplus / Surplus /
(Deficits) (Deficits) (Deficits) (Deficits)
2022 2021 2020 2019
8,657,541.0 7,889,198.6 6,837,351.9 5,068,943.6
Balance at January 01, 2022 0 0 4 7
Add / (Deduct):
Change in Accounting
Policy
Prior Period Errors (104,694.94) (21,447.19) 0.00 (21,744.52)
Restated Balance 8,552,846.06 7,867,751.41 6,837,351.94 5,047,199.15
Add/(Deduct) Changes in Net Assets / Equity
During the Year
Adjustment of Net
Revenue Recognized directly 865,438.2 1,285,579.1
in Equity 0.00 0.00 5 5
Surplus / (Deficit) for 689,245.3 789,789.5 186,408.4 504,573.6
the period 4 9 1 4
Total Recognized Revenue 689,245.3 789,789.5 1,051,846.6 1,790,152.7
and Expenses for the Period 4 9 6 9
Balance at December 31, 9,242,091.4 8,657,541.0 7,889,198.6 6,837,351.9
2022 0 0 0 4

6
 Republic of the Philippines
Province of Leyte
Municipality of Javier
Barangay Binulho

STATEMENT OF FINANCIAL PERFORMANCE

GENERAL FUND
For the Year Ended December 31, 2022
(With Comparative Figures for CY 2021 & 2020)

Not
e 2022 2021 2020
Revenue
Tax revenue 9 0.00 17,730.86 33,574.13
Share from Internal Revenue 4,616,238.0 2,975,227.0 2,776,778.0
10
Allotment 0 0 0
Service and Business Income 11 43,930.00 113,200.00 31,305.00
4,660,168.0 3,106,157.8 2,841,657.1
Total Revenue 0 6 3

Less: Current Operating Expenses

Personnel Services 12 1,536,808.00 1,387,728.00 1,274,968.00
Maintenance and Other Operating 1,068,799.6 1,188,444.0 558,454.8
13
Expenses 4 3 0
Financial Expenses 14 1,800.00 1,200.00 600.00
Non - Cash Expenses 15 216,528.73 220,921.11 337,912.45
Current Operating Expenses 2,823,936.37 2,798,293.14 2,171,935.25

Surplus (Deficit) from Current 1,836,231.6 307,864.7 669,721.8

Operation 3 2 8
Add (Deduct):
Transfers, Assistance and Subsidy
from Other Funds
Transfers, Assistance and Subsidy
to Other Funds
Surplus (Deficit) for the Period 1,836,231.63 307,864.72 669,721.88

7
 Republic of the Philippines
Province of Leyte
Municipality of Javier
Barangay Binulho

STATEMENT OF CASH FLOWS

GENERAL FUND
For the Year Ended December 31, 2022
(With Comparative Figures for 2021 & 2020)

2022 2021 2020

CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Inflows
Collection from Taxpayers 0.00 17,730.86 33,574.13
Share from Internal Revenue Allotment 4,616,238.00 2,975,227.00 2,776,778.00
Receipts from Business / Service Income 43,930.00 113,200.00 31,305.00
Other Receipts 73,124.44 207,940.00 10,550.00
Total Cash Inflows 4,733,292.44 3,314,097.86 2,852,207.13
Cash Outflows
Payment of Expense 501,987.96 1,186,494.03 602,462.92
Payment to Suppliers and Creditors 0.00 0.00 0.00
Payment to Employees 1,536,808.00 1,387,728.00 1,274,968.00
Interest Expense
Other Expenses
Total Cash Outflows 2,038,795.96 2,574,222.03 1,877,430.92
Net Cash provided from Operating Activities 2,694,496.48 739,875.83 974,776.21

CASH FLOWS FROM INVESTING

ACTIVITIES
Cash Inflows
Total Cash Inflows 0.00 0.00 0.00
Cash Outflows
Purchase/Construction of PPE 390,495.00 488,800.00 36,650.00
Total Cash Outflows (390,495.00) (488,800.00) (36,650.00)
Net Cash from Investing Activities (390,495.00) (488,800.00) (36,650.00)

CASH FLOWS FROM FINANCING

ACTIVITIES

8
Cash Inflows
Total Cash Inflows 0.00 0.00 0.00
Cash Outflows
Total Cash Outflows 0.00 0.00 0.00
Net Cash from Financing Activities 0.00 0.00 0.00
Net Cash provided by Operating, Investing and
2,304,001.48 251,075.83 938,126.21
Financing Activities
Add: Cash Balance at the Beginning of the Year 2,855,458.64 2,604,382.81 1,666,256.60
Cash Balance at the End of the Year 5,159,460.12 2,855,458.64 2,604,382.81

9
 Republic of the Philippines
Barangay Binulho
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
For the Year Ended December 31, 2022

Actual on
Original Adjustment Final Performanc
comparable
Budget s Budget e Difference
basis
Revenue
20,000.0 20,000.0 (20,000.0
Real Property Tax
0 0 0)
Business Tax
Share on the tax from
sand, gravel and other
quarry products
Fees and Charges on
commercial breeding
of fighting cocks,
cockfights and
cockpits
Fees and Charges on
places of recreation
which charge
admission fees
Fees and Charges on
billboards, signboards,
neon signs and outdoor
advertisements
Share from Internal 4,616,238.0 4,616,238.0 4,616,238.0
0.00
Revenue Collections 0 0 0
Other Taxes
Tax Revenue - Fines
and Penalties
Share from National
Wealth
Grants and Donations
in Cash
Grants and Donations
in Kind
Clearance and 25,000.0 25,000.0 42,450.0 17,450.0
Certification Fees 0 0 0 0
Other Service Revenue 10,000.00 250,000.00 260,000.00 251,480.00 (8,520.00)
Gain on Sale of
Property, Plant and
Equipment
TOTAL 4,671,238.00 250,000.00 4,921,238.00 4,910,168.00 (11,070.00)
Expenses
Personal
Services

10
 Actual on
Original Adjustment Final Performanc
comparable
Budget s Budget e Difference
basis
Salaries and Wages -
Regular
Salaries and Wages -
1,294,608.00 (54,564.00) 1,240,044.00 1,240,044.00 0.00
Casual/Contractual
Personal Economic
Relief Allowance
(PERA)
Clothing/Uniform
Allowance
Subsistence Allowance
Productivity Incentive
Allowance
Honoraria
Year End Bonus 88,984.00 (5,241.00) 83,743.00 79,040.00 4,703.00
Cash Gift 55,000.00 55,000.00 50,000.00 5,000.00
Other Bonuses and 97,919.0 157,724.0 157,724.0
59,805.00 0.00
Allowances 0 0 0
Personnel Benefit 26,400.0 26,400.0 26,400.0
Contributions 0 0 0
Terminal Leave
Benefits
Other Personnel
Benefits
TOTAL 1,562,911.00 0.00 1,562,911.00 1,526,808.00 36,103.00
Maintenance
and Other
Operating
Expenses
Traveling Expenses 155,000.00 155,000.00 57,600.00 97,400.00
Training Expenses 288,000.00 288,000.00 113,869.56 174,130.44
Office Supplies 86,000.0 86,000.0 44,354.2 41,645.7
Expenses 0 0 6 4
Accountable Forms 8,000.0 8,000.0 4,275.0 3,725.0
Expenses 0 0 0 0
Food Supplies
Expenses
Welfare Goods 83,000.0 57,417.0 57,417.0
(25,583.00)
Expenses 0 0 0
Drugs and Medicines 63,000.0 63,000.0 63,000.0
Expenses 0 0 0
Fuel, Oil and 10,000.0 10,000.0 10,000.0
Lubricant Expenses 0 0 0
Other Supplies and
151,000.00 84,242.00 235,242.00 127,236.00 108,006.00
Materials Expenses
Water Expenses
Electricity Expenses 80,000.00 17,000.00 97,000.00 91,983.38 5,016.62
Postage and Courier
Services

11
 Actual on
Original Adjustment Final Performanc
comparable
Budget s Budget e Difference
basis
Telephone Expenses
Internet Subscription 1,000.0 29,000.0 29,000.0
28,000.00
Expenses 0 0 0
Cable, Satellite,
Telegraph and Radio
Expenses
Demolition and
Relocation Expenses
Desilting and
Dredging Expenses
1,000.0 1,000.0 1,000.0
Auditing Services 0.00
0 0 0
Consultancy Services
Other Professional
Services
Environment/Sanitary 74,000.0 74,000.0 54,450.0 19,550.0
Services 0 0 0 0
Janitorial Services 25,000.00 25,000.00 3,000.00 22,000.00
Security Services
Other General 58,287.6 62,787.6 62,000.0 787.6
4,500.00
Services 2 2 0 2
Repairs and
5,000.0 5,000.0 5,000.0
Maintenance -Land
0 0 0
Improvements
Repairs and
5,000.0 5,000.0 4,910.0
Maintenance -
0 0 0
Infrastructure Assets
Repairs and
Maintenance - 91,000.0 91,000.0 22,650.0 68,350.0
Buildings and Other 0 0 0 0
Structures
Repairs and
Maintenance - 5,000.0 30,758.0 4,780.0 25,978.0
25,758.00
Machinery and 0 0 0 0
Equipment
Repairs and
Maintenance -
Transportation
Equipment
Repairs and
20,000.0 20,000.0 20,000.0
Maintenance -
0 0 0
Furniture and Fixtures
Repairs and
20,000.0 20,000.0 20,000.0
Maintenance -Leased
0 0 0
Assets
Repairs and
Maintenance -Leased
Assets Improvements
Repairs and 29,000.0 29,000.0 29,000.0
Maintenance -Other 0 0 0

12
 Actual on
Original Adjustment Final Performanc
comparable
Budget s Budget e Difference
basis
Property, Plant and
Equipment
LGU Equity on
2,000.0 11,500.0 10,000.0 1,500.0
National/Foreign 9,500.00
0 0 0 0
Funded Projects
Fidelity Bond 6,000.0 32,583.0 32,583.0
26,583.00 0.00
Premiums 0 0 0
Insurance Expenses
Labor and Wages
Advertising Expense
Representation
Expenses
Transportation and
Delivery Expenses
Rent/Lease Expenses
Membership Dues and
4,000.0 4,000.0 4,000.0
Contributions to 0.00
0 0 0
Organizations
Subscription Expenses
Donations
Other Maintenance
18,106.2 17,306.2 2,339.0 14,967.2
and Operating (800.00)
8 8 0 8
Expenses
Interest Expenses
Bank Charges 1,000.00 800.00 1,800.00 1,800.00 0.00
Other Financial
Charges
5% LDRRMF 233,561.90 233,561.90 233,561.90
10% SK allocation 467,123.60 467,123.60 467,123.60
20% Development 923,247.6 923,247.6 923,247.6
Fund 0 0 0
1% for the Elderly and 50,000.0 50,000.0 24,960.0 25,040.0
Disabled 0 0 0 0
1% Barangay Council
60,000.0 60,000.0 60,000.0
for the Protection of
0 0 0
Children
TOTAL 3,023,327.00 170,000.00 3,193,327.00 667,790.20 2,525,446.80
Capital
Outlays
Land
Repairs and
Maintenance -Land
Improvements
Infrastructure Assets
Buildings and Other
Structures

13
 Actual on
Original Adjustment Final Performanc
comparable
Budget s Budget e Difference
basis
Machinery and 85,000.0 165,000.0 103,507.0 61,493.0
80,000.00
Equipment 0 0 0 0
Transportation
Equipment
Furniture, Fixtures and
Books
Leased Assets
Leased Assets
Improvements
Other Property Plant
and Equipment
85,000.0 165,000.0 103,507.0 61,493.0
TOTAL 80,000.00
0 0 0 0

14
 Republic of the Philippines
Province of Leyte
Municipality of Javier

BARANGAY GUINDAPUNAN
NOTES TO FINANCIAL STATEMENTS
GENERAL FUND

1. GENERAL INFORMATION

The financial statements of Barangay Guindapunan was issued on December 31, 2022.
Barangay Guindapunan is situated at the North of Barangay Malitbogay, South-Barangay
Caraye, West-Baybay City and East-Barangay Odiong.It has a total land area of 799.40
hectares and the barangay hall is located in Barangay Guindapunan. The barangay
exercises the functions and responsibilities necessary for the efficient and effective
provision of the following basic services: agricultural support services; health and social
welfare services; services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection; maintenance of katarungan pambarangay;
maintenance of barangay roads and bridges and water supply systems; infrastructure
facilities; information and reading center; and satellite or public market.

2.1 STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

The financial statements have been prepared in accordance with and comply with the
Philippine Public Sector Accounting Standards. The financial statements are presented in
Peso and the figures are rounded to the nearest pesos.

The financial statements are prepared on the basis of historical cost. The cash flow
statement is prepared using the direct method. The Statement of Comparison of Budget
and Actual Amounts is presented according to the classification adopted for budgeting
purposes.

2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1) Revenue Recognition
Revenues are recorded when received.

Revenue from non-exchange transactions

Taxes, fees, grants and donations are recognized when the event occurs. Transfers of
funds from other government agencies without specific purpose for which the fund will
be utilized are recognized as non-exchange transactions.

Revenue from exchange transactions

15
Revenues from fees on issuance of certifications and clearances and other services
rendered, sale of goods are recognized as exchange transactions.

2) Expenses
Expenses are recognized and taken up in the accounts when incurred.

3)_ Inventories
Inventories are recorded following the asset method, cost at moving average method and
measured at the lower of cost and net realizable value. Inventories acquired thru non-
exchange transactions are recognized at its fair value at the time of transfer.

4) Recognition of Liabilities
Liabilities are recognized at the time goods and services are accepted or rendered.

5)_ Property, Plant and Equipment

All property, plant and equipment except donated property without declared value are
stated at cost less accumulated depreciation. Major repairs, which extends the life of the
asset are capitalized and depreciated together with the asset.

Depreciation is charged on the depreciable value of assets following the straight-line

method over the useful life of the asset.

PPEs are derecognized upon disposal. Any gain or loss arising from the derecognition is
recognized in the surplus or deficit. PPEs except public infrastructure which become
unserviceable or no future economic benefit or service potential is expected from its
continued use are transferred to the Other Assets.

6)_ Public infrastructure

Public infrastructure assets are recorded in the books at cost. Replacement of parts
required at regular intervals is recognized in the carrying amount of the Public
Infrastructure when the costs incurred meet the recognition criteria. The carrying amount
of those parts replaced is derecognized.

7)_ Real Property Tax

Real Property Tax represents the 30% share of the barangay from the City's collection of
the basic real property tax and its penalties.

8) Share from Internal Revenue Collections

This represents the share of the barangay from the 40% allocation for the local
governments from the national internal revenue taxes based on the collection of the third
fiscal year preceding the current fiscal year.

9) Salaries and Wages

This includes the cost of personal services for employees of the barangay.

10) Cash and cash equivalents

16
 Cash and cash equivalents comprise cash in the local treasury and cash in local treasury
current and time deposit accounts.

Note 3 Cash and cash equivalents

2022 2021 2020 2019

Cash In Local Treasury 22,097.44 6,740.00 1,120.00 400
Cash in Bank - Local
Currency, Current 3,760,048.30 3,285,543.49 2,994,835.23 2,554,695.02
Account
TOTAL 3,782,145.74 3,292,283.49 2,995,955.23 2,555,095.02
Note 4 Receivables

2022 2021 2020 2019

Advances for Officers and
715.12 715.12 715.12 715.12
Employees
TOTAL 715.12 715.12 715.12 715.12

Note 5 Property, Plant and Equipment

Land Buildings Machinery Furniture,

Infrastructure
Cost Improvement and Other and Fixtures Total
Assets
s Structures Equipment and Books
1,509,001.5
As at 01/01/22 20,000.00 1,503,370.00 348,692.50 171,190.59 3,552,254.59
0
Additions 0.00 137,060.00 0.00 98,959.00 0.00 236,019.00
Disposals
Transfers/Adj
1,509,001.5
As at 12/31/22 20,000.00 1,503,370.00 447,651.50 171,190.59 3,651,213.59
0

Depreciation
As at 01/01/22 0.00 245,339.66 15,153.81 3,667.79 0.00 264,161.26
Depreciation 0.00 57,199.85 42,014.58 15,017.43 2,850.00 117,081.86
Disposals
Transfers/Adj
As at 12/31/22 0.00 302,539.51 57,168.39 18,685.22 2,850.00 381,243.12
Net book values 1,451,833.1
20,000.00 1,200,830.49 428,966.28 168,340.59 3,269,970.47
As at 12/31/22 1

Note 6 Payable Accounts

2022 2021 2020 2019

Accounts Payable 3,577.50 217,819.00 0.00 1,550.00

17
 2022 2021 2020 2019
Due to Officers &
0.00 0.00 0.00 75,528.00
Employees
TOTAL 3,577.50 217,819.00 0.00 77,078.00

Note 7 Inter-Agency Payable

2022 2021 2020 2019

Due to BIR 8,021.82 16,052.42 5,814.02 5,633.40
Due to NGAs 2,155.01 2,155.01 2,155.01 2,155.01
Due to LGUs 230,000.00 30,355.00 200,000.00 200,000.00
TOTAL 240,176.83 48,562.43 207,969.03 207,788.41

Note 8 Trust Liabilities

2022 2021 2020 2019

Trust Liabilities -
Disaster Risk Reduction
297,918.73 0.00 0.00 0.00
and Management Fund
(DRRMF)
TOTAL 297,918.73 0.00 0.00 0.00

Note 9 Other Payables

2022 2021 2020 2019

Other Payables 111,833.33 111,833.33 111,833.33 111,833.33
TOTAL 111,833.33 111,833.33 111,833.33 111,833.33

Note 10 Government Equity

2022 2021 2020 2019

Portion Pertaining to the
Property, Plant and 3,269,970.47 3,288,093.33 2,737,264.14 2,305,622.04
Equipment
Equity set aside to finance
capital projects with
appropriations provided
3,146,727.98 2,202,503.33 2,202,503.33 1,862,703.70
in the previous years
(Continuing
Appropriations)
Available for Operations (539,791.14) 334,065.76 474,364.66 (111,493.04)
Equity allocated to settle
653,506.39 378,214.76 0.00 396,699.74
existing obligations

18
 2022 2021 2020 2019
Prior Year's Adjustments (131,088.76) 0.00 0.00 11,200.00
TOTAL 6,399,324.94 6,202,877.18 5,414,132.13 4,464,732.44

Note 11 Tax Revenue

2022 2021 2020 2019
Real Property Tax- Basic 0.00 6,999.86 1,904.91 8,500.20
TOTAL 0.00 6,999.86 1,904.91 8,500.20

Note 11 Share from Internal Revenue Allotment

2022 2021 2020 2019

Share from Internal
Revenue Collections 2,067,746.27 1,496,533.00 1,399,410.00 1,246,827.00
(IRA)
TOTAL 2,067,746.27 1,496,533.00 1,399,410.00 1,246,827.00

19
Note 12 Service and Business Income

2022 2021 2020 2019

Clearance and Certification Fees 4,140.00 4,990.00 4,410.00 2,960.00
Other Service Revenue 0.00 3,500.00 5,000.00
TOTAL 4,140.00 8,490.00 9,410.00 2,960.00

Note 13 Personnel Services

2022 2021 2020 2019

Salaries and Wages -
635,520.00 635,520.00 559,572.00 44,700.00
Casual/Contractual
Honoraria 0.00 0.00 0.00 478,416.00
Year End Bonus 30,378.00 6,412.00 4,392.00 0.00
Cash Gift 55,000.00 55,000.00 55,000.00 55,000.00
Other Bonuses and 0.00 0.00 0.00
48,060.00
Allowances
TOTAL 769,858.00 696,932.00 618,964.00 578,116.00

20
Note 14 Maintenance and Other Operating Expenses

2022 2021 2020 2019

Traveling Expenses - 105,330.00 94,930.00 66,960.00 31,935.00
Local
Training Expenses 118,502.56 4,000.00 1,000.00 60,055.00
Office Supplies 18,023.00 18,438.00 1,000.00
Expenses 29,963.10
Accountable Forms 0.00 570.00 5,550.00 0.00
Expenses
Welfare Goods 0.00 7,974.00 122,111.00 0.00
Expenses
Other Supplies 49,970.00 7,680.00 29,923.32 0.00
Expenses
Electricity Expenses 20,353.00 11,793.00 12,206.00 14,441.00
Auditing Services 1,000.00 1,000.00 1,000.00 1,000.00
Janitorial Services 1,050.00 0.00 0.00 0.00
Other General Services 10,300.00 10,300.00 8,600.00 8,600.00
Repairs and
Maintenance -
5,500.00 0.00 0.00 0.00
Machinery &
Equipment
LGU Equity on Other
LGU/National/Foreign 10,600.00 0.00 0.00 0.00
Funded Proj.
Transfer to TF
Unutilized Current
297,918.73 0.00 0.00 0.00
Year Allocation for
LDRRMF
Fidelity Bond 0.00 4,215.00 0.00
3,577.50
Premiums
Membership Dues and
Contributions to 4,000.00 4,000.00 4,000.00 4,000.00
Organizations
Other Maintenance and
0.00 0.00 0.00 3,728.00
Operating Expenses
TOTAL 657,164.89 160,270.00 274,003.32 124,759.00

Note 15 Financial Expenses

2022 2021 2020 2019
Bank Charges 600.00 0.00 0.00 0.00
TOTAL 600.00 0.00 0.00 0.00

21
Note 16 Non - Cash Expenses

2022 2021 2020 2019

Depreciation -
57,199.85 46,899.21 46,899.21 151,541.24
Infrastructure Assets
Depreciation -
Buildings and Other 42,014.58 15,153.81 0.00 0.00
Structures
Depreciation -
Machinery and 9,554.93 1,846.96 0.00 0.00
Equipment
Depreciation -
Furniture, Fixtures 2,850.00 0.00 0.00 0.00
and Books
Depreciation - Other
Property, Plant and 5,462.50 1,820.83 0.00 0.00
Equipment
TOTAL 117,081.86 65,720.81 46,899.21 151,541.24

Note 17 Local Disaster Risk Reduction Management Fund

LDRRMF
Quick Response
Particulars Mitigation Total
Fund (QRF)
Fund 70%
30%
A. Sources of Funds
Current Appropriation 31,089.28 72,541.67 103,630.95
Continuing Appropriation
Previous Years' Appropriations
Transferred to the Special Trust 134,985.91 162,932.82 297,918.73
Fund
Transfers/Grants
Total Funds Available 166,075.19 235,474.49 401,549.68
B. Utilization
Chainsaw 49,900.00 49,900.00
Total Funds Utilized 0.00 49,900.00 49,900.00
Unutilized Balance, December
166,075.19 185,574.49 351,649.68
31, 2022

The LDRRM fund represents the amount set aside by the BLGU to finance its risk
reduction projects or activities pursuant to R.A. No. 10121 otherwise known as the

22
 “Philippine Disaster Risk Reduction Management Act of 2010”. The total available fund
as of December 31, 2022 is Php 351,649.68 with the breakdown below:

Current Appropriations Php 53,730.95

Special Trust Fund (LDRRM) Php 297,918.73
TOTAL Php 351,649.68

Note 18 Reconciliation of Net Cash Flows from Operating Activities to

Surplus/(Deficit)

(in thousands of currency

units) 2022 2021 2020 2019
Surplus/(Deficit) 527,181.52 589,100.05 470,858.38 404,905.96
Non-cash transactions
Depreciation 117,081.86 65,720.81 46,899.21 151,541.24
Amortization of
Intangible
Assets
Impairment Loss
Increase in payables 275,291.63 0.00 (76,897.38) 88,308.00
(Gains) Losses on Sale
of
PPE
(Gains) Losses on Sale
of
Investments
Increase in current
assets (330,733.76) 0.00 0.00 0.00
Increase in
investments due
to revaluation
Increase in receivables
Net Cash from
588,821.25 654,820.86 440,860.21 644,755.20
Operating Activities

23
 PART II

AUDIT OBSERVATIONS AND RECOMMENDATIONS

A.Financial Audit

Incomplete Property count and unconfirmed PPE

1. The accuracy of the assets under Property, Plant and Equipment (PPE)
account with a carrying value of ₱3,269,970.47 of December 31, 2022 could
not be ascertained since the Report on Inventory of Property and Equipment
(RIPE) was not reconciled with accounting records while property records
were not maintained, contrary to pertinent provisions of the Manual on the
Financial Management of Barangays, thus, the PPE account balance remain
unreliable.

1.1. Chapter 7 of the Manual on the Financial Management of Barangays prescribes

the specific Policies and Procedures on Investment Property, Property, Plant
and Equipment, and Biological Asset. Item 7.1.18, 7.1.19 and 7.2.5 of the
Manual provides that:

7.1.18 The barangay shall conduct an annual physical inventory of all

supplies, property and equipment of the barangay.

7.1.19 Report on the results of physical inventory of property/equipment

shall be reconciled with the accounting records.
xxx

7.2.5

a. The Inventory Committee headed by the PB or his authorized

representative and the BT as his member shall conduct a physical
count of all property and equipment of the barangay at least once a
year.

b. The Inventory Committee, upon the completion of the physical

count, shall prepare three copies
c.
d. Report on Inventory of Property and Equipment (RIPE), as shown
in Annex 30 and shall be approved by the PB. Xxx

e. The RIPE shall be the basis of the C/M Accountant for reconciling
the results of inventory with the PPE accounts.

24
 f. The RIPE shall be the basis of the BT for reconciling the
equipment that should be covered by ICS with the actual file of
ICS.

1.2. Based on the Statement of Financial Position and Notes to the Financial
Statements of the barangay, the acquisition cost of all properties of the Barangay
recorded under Property, Plant and Equipment (PPE) account as of December 31,
2022 amounted to ₱3,651,213.59, while accumulated depreciation amounted to
₱381,243.12. Hence, as of December 31, 2021, the barangay has PPEs with net
book value of ₱3,269,970.47.

1.3. The results of physical count of the PPEs of the Barangay Inventory Team,
presented in the RIPE, which was submitted to the Audit Team only presented
PPEs totaling ₱2,582,344.31, thereby leaving a variance of ₱1,068,869.28.
Comparison is presented in Table 1.

Table 1. Comparison of PPE per Accounting Records and RIPE

Property, Plant and Per Accounting
Per RIPE Variance
Equipment Records
Other Land Improvements ₱ 20,000.00 - ₱ 20,000.00
Irrigation Canal and 81,930.00 (81,930.00)
Laterals
Other Infrastructure Assets 156,911.00 - 156,911.00
Flood Control Systems 969,948.00 1,025,078.00 (55,130.00)
Water Supply Systems 376,511.00 376,511.00 -
Buildings 1,226,256.50 478,481.31 747,775.19
Other Structures 282,745.00 282,745.00 -
Office Equipment 108,552.50 - 108,552.50
Machinery 20,900.00 - 20,900.00
Information and
Communication 152,599.00 140,219.00 12,380.00
Technology Equipment
Sports Equipment 10,200.00 - 10,200.00
Other Machinery and
69,400.00 49,900.00 19,500.00
Equipment
Furniture and Fixtures 140,290.59 41,980.00 98,310.59
Books 30,900.00 - 30,900.00
Other Property, Plant and
86,000.00 105,500.00 (19,500.00)
Equipment
TOTAL ₱ 3,651,213.59 ₱ 2,582,344.31 ₱ 1,068,869.28

1.3 As can be seen in Table 1, there is a difference of ₱1,068,869.28 between

accounting records and the result of physical count conducted by the Barangay
Inventory Team. Since most of the PPE accounts per Accounting Records are

25
 more than what was counted per RIPE, this could possibly mean unaccounted
properties or non-existent properties.

1.4 In addition, it was noted that Property Cards (PCs) were not maintained by the
Barangay Treasurer in her capacity as the Designated Property Custodian of the
Barangay and PPE Ledger Cards were not maintained by the Accountant through
the Designated Barangay Bookkeeper.

1.5 Due to these deficiencies, the reported balances of the PPE accounts remain
doubtful and unreliable, while the physical existence of some of the properties
could not be ascertained. Moreover, these put the unaccounted barangay
properties at risk of undetected theft and loss.

1.6 We recommended that the Punong Barangay:

a. Require the Barangay Inventory Team to conduct complete physical count

of all barangay properties, and report the result of the count in the RIPE;

b. Request the Municipal Accountant, to provide the Inventory

Committee with the detailed list of properties recorded in the books so
that the latter can reconcile the same with their RIPE. Any remaining
variance should be located, otherwise, the Punong Barangay shall be
held liable for such loss; and,

c. Require the Barangay Treasurer as the designated Barangay

Property Custodian to prepare and maintain Property Cards (PCs) of
all PPEs to include data on the quantity, date of acquisition, unit cost,
condition and Barangay official accountable for each item.

1.7 We also recommended the Municipal Accountant through the designated

Barangay Bookkeeper to maintain the Property Ledger Cards and reconcile
her records with the PCs of the Barangay Treasurer.

1.8 During the exit conference,

B.Compliance Audit

Local Disaster Risk Reduction Management Fund

2. Disbursements totaling ₱130,852.47 from CYs 2019 to 2022 were paid from
prior year’s unexpended DRRMF despite not being included in the
LDRRMF Investment Plan for CYs 2020, 2021 and 2022, contrary to
Sections 5.1.2 and 5.1.3.2 of COA Circular 2012-002, thus, resulted to
irregular expenditures.

26
 2.1. Section 5.1.2 of COA Circular 2012-002 states that, a Local Disaster Risk
Reduction and Management Fund Investment Plan (LDRRMFIP) for the DRRM
program shall be prepared annually. It shall present the 30% allocation for QRF in
lump sum and the allocation for disaster mitigation, prevention and preparedness
with details as to projects and activities to be funded. The LDRRMFIP shall also
include under a separate caption, the list of projects and activities charged to
the unexpended LDRRMF of previous years.

2.2. Section 5.1.3.2 of the same circular states that the release and use of LDRRMF
shall be supported by LDRRMFIP for projects and activities listed in the
approved plan as incorporated in the local development plan and annual work and
financial plan

2.3. During the review of Barangay’s appropriation and utilization of the 5% BDRRM
Fund, the Audit Team noted that Barangay Guindapunan appropriated a total
amount of ₱311,396.05 under DRRM Fund during the 4-year period under audit,
as presented in Table 2.

Table 2. BDRRMF balance

Amount
Particular TOTAL
2019 2020 2021 2022
Beginning Balance ₱ 242,187.95 ₱304,217.80 ₱222,788.33 ₱ 297,918.73 ₱ 1,067,112.81
Current
Appropriation
62,029.85 70,604.85 75,130.40 103,630.95 311,396.05
84,900.
Utilization 236,934.32
152,034.32 00
Balance as of end
₱ 304,217.80 ₱222,788.33 ₱297,918.73 ₱ 316,649.68 ₱ 1,141,574.54
of year

2.4. It was further noted by the Audit Team that the Barangay still had a balance of
₱242,187.95 out of its prior years’ LDRRM Fund as of December 31, 2018.
However, it was observed that the LDRRMF IP for CY 2019 did not include the
planned PPAs out of the unutilized DRRMF as of December 31, 2018 but only
those appropriated under CY 2019 Budget. The same observations were noted
for CYs 2020, 2021 and 2022. Consequently, the unexpended balances of prior
years’ cannot be used in the absence of the LDRRMFIP which should have
indicated the PPAs for which said prior years’ balances will be used for.

2.5. Despite the absence of a duly approved LDRRMFIP for previous years
unexpended balances, disbursements totaling ₱130,852.47 were incurred and paid
from previous years balance. Details of Disbursements are shown in Table 3.

Table 3. Disbursements charged to LDRRMF

Amount
Check Charged to
Date Particulars Charged to Remarks
No. Previous
Current TOTAL
years
Appropriation
DRRMF

27
 Amount
Food commodities (54
sacks of rice-
P105,300.00; 4 boxes of P21,181.85-
sardines- P7,600.00; 4 charged to 30%
Check boxes Particulars
of noodles- QRF Remarks
CY 2020
Date ₱
04/16/2020 No.
4392008 P3,000.00; 2 boxes of 3 in ₱ 21,181.85 ₱100,929.15 LDRRMFIP,
122,111.00
1- P3,600.00; 5 boxes of excess amount not
chlorine- P500.00; 1 box included in CY
of detergent powder- 2020 LDRRMFIP
P2,016.00; 1 pack of
plastic bag- P95.00)
Medical Supplies for Not Included in
04/16/2020 4392009 response of use (COVID- CY 2020
₱ 29,923.32 29,923.32
19) LDRRMFIP
Included in CY
02/01/2022 4807726 1 unit of chainsaw ₱ 49,900.00
49,900.00 2022 LDRRMFIP
Included in CY
02/14/2022 4807738 1 unit of ladder ₱ 35,000.00
35,000.00 2021 LDRRMFIP
TOTAL ₱ 106,081.85 ₱130,852.47 ₱ 236,934.32

2.6. Without an approved LDRRMFIP for the previous year’s DRRMF balances, the
Chairman Committee on Appropriation had no basis for certifying the existence
of available appropriations authorized for the purpose. Thus, disbursements
charged against LDRRMF were irregular. In addition, the absence of an
approved plan denotes that the procured items and other activities were not
approved by the other members of the LDRRM council and based only on
arbitrary decision of the requesting officials.

2.7. We recommended that the BDRRMO, through the Punong Barangay,

convene the LDRRM Council and prepare the LDRRMFIP which also
includes PPAs to be paid from previous years’ unexpended DRRMF
annually as basis for the use of the LDRRMF based on the priority
programs, projects and activities outlined in COA Circular 2012-002.

2.8. We also recommended that the Punong Barangay, Chairman Committee on

Appropriation, and Barangay Treasurer stop processing disbursements from
LDRRMF if said disbursement is not included in the approved LDRRMFIP.

2.9. During the exit conference,

20% Development Fund

3.0. Eleven projects identified to be priority development projects for CYs 2019
to 2022 and continuing prior year’s unidentified projects totaling
₱1,671,309.60 remained unimplemented as of December 31, 2022, contrary to
Section 3.2.3 of DBM-DOF-DILG JMC No. 1 dated November 24, 2020
hence, optimal utilization of the fund was not achieved and the constituents
were deprived from enjoying its benefits.

28
3.1. DBM-DOF-DILG Joint Memorandum Circular No. 1 dated November 24, 2020
provides the revised guidelines on the appropriation and utilization of the 20% of
the annual internal revenue allotment for development projects. The JMC was
issued to increase the responsiveness of the guidelines and promote greater
autonomy, transparency and accountability in the LGUs’ appropriation and
utilization of their respective 20% DF. Pertinent sections of the subject
Memorandum Circular are as follows:

a) Section 3.1 – In accordance with Section 287 of RA No. 7160, each LGU
shall appropriate in its annual budget no less than twenty
percent (20%) of its annual IRA for development projects.

b) Section 3.2 – The LGUs are enjoined to observe the following policies and
guidelines in the appropriation and utilization of the 20% DF:

3.2.1 The 20% DF shall be utilized to finance the LGUs'

priority development projects, as embodied in their
respective duly approved local development plans, and
medium-term and annual investment programs, which
should be harmonized with the Regional Development
Plan and the Philippine Development Plan.

3.2.2 The development projects that may be included under

the 20% DF shall be those that are necessary,
appropriate, or incidental to efficient and effective local
governance, and those which are essential to the
promotion of the general welfare of the people.

3.2.3 The LGUs shall ensure that the development

projects to be funded out of the 20% DF are well-
planned and procurement-and-implementation-
ready.

3.2.4 Technical assistance may be sought from National

Government Agencies (NGAs), such as, but not limited
to, the Department of Agriculture, DBM, Department of
Education, Department of Environment and Natural
Resources, DOF, Department of Health, DILG,
Department of Public Works and Highways,
Department of Social Welfare and Development, and
National Economic and Development Authority, for the
determination of the more relevant and responsive
development projects that may be included under the
20% DF and to ensure compliance with the standards
prescribed by the NGAs concerned.

29
 3.2.5 The following expenditure items shall not be allowed to
be charged against the 20% DF:

3.2.5.1 Personal Services expenditures, such as

salaries, wages, overtime pay, and other
personnel benefits;
3.2.5.2 Administrative expenses, such as supplies,
meals, representation, communication, water
and electricity, petroleum products, and the like;
3.2.5.3 Traveling expenses, whether domestic or
foreign;
3.2.5.4 Registration fees and other expenses related to
the conduct of and participation to trainings,
seminars, conferences or conventions;
3.2.5.5 Purchase, maintenance or repair of
administrative office' furniture, fixtures,
equipment or appliances; and
3.2.5.6 Purchase, maintenance or repair of motor
vehicles used for administrative purposes.

3.2. During the conduct of our audit, it was noted that the Barangay had appropriated
projects for 20% Development Fund amounting to ₱246,719.40, ₱280,019.40,
₱299,321.60 and ₱413,523.80 for CY 2019, 2020, CY 2021 and CY 2022,
respectively. For the 4-year period, the 20% DF appropriation totaled to
₱1,239,584.20 while the continuing balance of the same fund as of January 1,
2019 amounted to ₱729,011.80. The said annual appropriations were for the
following projects:

Table 4. Projects to be paid from 20% Development Fund

Supplemental
CY Project/Title Appropriation Budget/Augme Balance Utilization Balance
ntation
2018 and
Previous
Unidentified Projects ₱ 729,011.80 ₱ (729,011.80) ₱ - ₱ -
Years
Continuing
subtotal prior years continuing 729,011.80 (729,011.80) - - -
Construction of Intake
90,000. (90,000.
Tank for Water System -
00 00) -
Level 3
2019 Annual Construction of Health 100,000. (100,000.
Budget -
Center 00 00) -
Installation of 20 units 56,719. (56,719.
-
Brgy. Street Lights 40 40) -
subtotal 2019 246,719.40 (246,719.40) - - -
2020 Annual Concreting of 200meters 280,019. 280,019.
280,019.40
Budget Brgy. Road 40 40
subtotal 2020 280,019.40 - 280,019.40 - 280,019.40

30
 Supplemental
CY Project/Title Appropriation Budget/Augme Balance Utilization Balance
ntation
Construction of
49,321. 49,321.
Additional Brgy. Street 49,321.60
60 60
Lights
2021 Annual Construction of Intake
100,000. 100,000.
Budget Tank for Water System 100,000.00
00 00
Level 3
Construction of Health 150,000. 150,000.
150,000.00
Center 00 00
Construction of 26 297,286. 297,286. 282,745.
14,541.40
Streetlights 40 40 00
Improvement of Day 102,136. 102,136.
2021 102,136.80
Care Center 80 80
Supplemental
Improvement of Multi- 426,308. 426,308.
Budget No. 1 426,308.00
purpose Hall 00 00
dated August
Procurement of Relief 100,000. 100,000.
10, 2021 100,000.00
Goods 00 00
Procurement of Drugs 50,000. 50,000.
50,000.00
and Medicines 00 00
subtotal 2021 299,321.60 975,731.20 1,275,052.80 282,745.00 992,307.80
Construction of Health 200,000. 200,000.
200,000.00
Center 00 00
2022 Annual Construction of Reading 150,000. 150,000.
150,000.00
Budget Center 00 00
Installation of Water 63,523. 63,523.
63,523.80
Meter Reading 80 80
subtotal 2022 413,523.80 - 413,523.80 - 413,523.80
Total ₱ 1,968,596.00 ₱ - ₱1,968,596.00 ₱ 282,745.00 ₱1,685,851.00

3.3. Review of utilization revealed that out of the available appropriations, the
barangay disbursed a total amount of ₱282,745.00 to implement the projects
funded under 20% Development Fund from CYs 2019 to 2022 as follows.

Table 5. Disbursements paid out of 20% Development Fund – CY 2019-2022

Check Gross
PPA Particular Check No. Budget
Date Amount
Installation of 26 units Labor 12/28/2021 4807714 66,250.00 2018 and
additional street light Materials 216,49 prior (2021
01/25/2022 4807725 5.00 Supplemental
Budget)
Total 282,745.00

3.4. As can be seen in Tables 4 and 5, only one project was implemented during the 4-
year period. Out of the ₱1,968,596.00 appropriation, ₱282,745.00 was actually
disbursed, which is only equivalent to 14.36% of the current and previous years
appropriation.

3.5. Review of the status of implementation of projects of the barangay disclosed that
eleven projects identified and budgeted in CYs 2019 to 2022 and prior years
continuing appropriation totaling ₱1,671,309.60 were not implemented.

Table 6. Unimplemented Projects Appropriated in CYs 2019-2022

31
 Budget Year PPA Appropriation
2020 Annual Budget Concreting of 200 meters Brgy. Road ₱ 280,019.40
Construction of Additional Brgy. Street Lights 49,321.60
Construction of Intake Tank for Water System
2021 Annual Budget 100,000.00
Level 3
Construction of Health Center 150,000.00
Improvement of Day Care Center 102,136.80
2021 Supplemental Improvement of Multi-purpose Hall 426,308.00
Budget No. 1 dated
August 10, 2021 Procurement of Relief Goods 100,000.00
Procurement of Drugs and Medicines 50,000.00
Construction of Health Center 200,000.00
2022 Annual Budget Construction of Reading Center 150,000.00
Installation of Water Meter Reading 63,523.80
Total ₱ 1,671,309.60

3.6. Since not all PPAs were implemented, the fund was not optimally utilized, hence
the constituents were deprived of the benefits from the noted projects.

3.7. We recommend that the Punong Barangay implement all the projects
appropriated under 20% Development Fund so that funds are optimally
utilized to help achieve the desirable socio-economic development and
environmental outcomes of the Barangay

3.8. During the exit conference,

1% Allocation for Senior Citizen and PWD

4.0. Funds appropriated for programs and projects for Senior Citizens and
Persons with Disabilities (PWD) for CYs 2020 to 2022 were not equivalent to
1% of the barangay’s IRA, contrary to DBM and DSWD Joint Circular No.
2003-01 dated April 28, 2003, thus depriving the elderly citizens in the
barangay the full benefits of the programs due them.

4.1. DBM-DSWD Joint Circular No. 2003-001 dated April 28, 2003 was issued to
prescribe guidelines for the implementation of Section 29 of the General
Appropriations Act of 2003 which states that the plans, programs and projects
intended to address the concerns of senior citizens and persons with disability
shall be integrated in the regular activities of the agencies. Sections 4.2 and 4.3
thereof directs all government agencies, departments, bureaus, offices,
commissions and state universities and colleges to allocate at least one percent
(1%) of their respective budget to be utilized in the implementation of
programs/projects/activities/services which will address the needs of older
persons and persons with disabilities (PWDs).

32
4.2 Perusal of the Annual Budgets of the barangay disclosed that the funds
appropriated for Senior Citizens and PWDs programs and activities for CY 2020
to 2022 do not equal to 1% of the IRA of the Barangay as shown in Table 14.
Table 7. Fund for Senior Citizens and PWDs Programs/Projects
Particulars CY 2022 CY 2021 CY 2020 CY 2019
1,412,097.0
Estimated IRA 2,072,619.00 1,502,608.00 0 1,240,597.00
SHOULD BE - 1% of IRA 20,726.19 15,026.08 14,120.97 12,405.97
ACTUAL Appropriation 15,000.00 8,000.00 14,000.00 14,000.00
Lacking Appropriation 5,726.19 7,026.08 120.97 0.00

4.3. Due to the lacking necessary appropriation sanctioned by law, the elderly citizens
and PWDs of the barangay are deprived of the benefits of the programs which
could have been financed from the said amount.

4.4. We recommended that the Punong Barangay and its Council appropriate
funds in its annual budget for programs and projects benefitting Senior
Citizens and Persons with Disabilities (PWD) at an amount of no less than
1% of the annual IRA as required by the Expanded Senior Citizen Act, R.A.
No. 9994.

4.5 During the exit conference,

Appropriation for LCPC

5.0. Funds appropriated in the CY 2019 to 2021 budget of the barangay for the
implementation of programs, projects and activities for the protection of
children were not equivalent to 1% of the barangay’s IRA, contrary to
Republic Act No. 9344, thus children are deprived of the full benefits of the
programs due them.

5.1. Republic Act No. 9344 (Juvenile Justice and Welfare Act of 2006) adopts as a
policy the protection of the interests of children and promotes their physical,
moral, spiritual, intellectual and social well-being. The Act also recognizes the
rights of children to assistance, proper care and nutrition and special protection
from all forms of neglect, abuse, cruelty and exploitation, and other conditions
prejudicial to their development.

5.2. Section 15 of the said Act mandates the creation of Local Councils for the
Protection of Children (LCPC) in all levels of local government. It provides
further that 1% of the internal revenue allotment (IRA) of barangays,
municipalities and cities, shall be allocated for the strengthening and
implementation of the LCPC.

5.3. Perusal of the Annual Budget of the barangay disclosed that the funds
appropriated in CY 2019 to 2021 for the implementation of programs, projects

33
 and activities (PPA) intended for the Council for the protection and well-being of
children do not equal to 1% of the IRA of the Barangay as required by Republic
Act No. 9344 as follows:

Table 8. Available Funds for LCPC

Particulars CY 2022 CY 2021 CY 2020 CY 2019
1,412,097.0
Estimated IRA 2,072,619.00 1,502,608.00 0 1,240,597.00
SHOULD BE - 1% of IRA 20,726.19 15,026.08 14,120.97 12,405.97
ACTUAL Appropriation 20,726.19 9,333.20 7,199.05 9,928.80
Lacking Appropriation 0.00 5,692.88 6,921.92 2,477.17

5.4. Due to the lacking appropriations, the children in the barangay are deprived of the
benefits of the programs which could have been financed from the said amount.

5.5. We recommended that the Punong Barangay include in its annual budget an
appropriation equivalent to 1% of its IRA intended for the protection and
welfare of the children in the barangay, identify and implement the
programs, projects and activities using the said fund pursuant to RA 9344.

5.6. During the exit conference,

Delayed and Partial Deposit of Collections

6.0. The Barangay Treasurer did not deposit her collections regularly, intact and
on time, contrary to Section 69(1) of PD 1445, COA Circular No. 92-382
dated July 3, 1992 and Section 2.1 of COA Circular No. 97-002 dated
February 10, 1997 and the Manual on Financial Management of Barangays,
thus exposing barangay funds to the risk of loss, through misuse and/or
misappropriation.

6.1. Section 69(1) of PD 1445 provides: “Public officers authorized to receive and
collect moneys arising from taxes, revenues, or receipts of any kind shall remit or
deposit intact the full amounts so received and collected by them to the treasury
of the agency concerned and credited to the particular accounts to which the said
moneys belong. The amount of the collections ultimately payable to other
agencies of the government shall thereafter be remitted to the respective
treasuries of these agencies.”

6.2. Section 8 of COA Circular No. 92-382 dated July 3, 1992 issued to implement the
provisions of Republic Act No. 7160 states that all collections shall be deposited
intact with authorized depositories. The practice of retaining part of the
collections as a cash reserve for cash disbursements shall be discontinued.

6.3. Section 2.1 of COA Circular No. 97-002 dated February 10, 1997 also requires
that daily receipts of collections must be deposited intact with the proper bank.

34
6.4. Section 4.1.13 of the Manual on Financial Management of Barangays states that:

4.1.13 Collections received by the BT as deputized collector of the

city/municipality shall be remitted intact to the treasurer of the
city/municipality concerned daily or once the collections reach
P5,000.00.

6.5. During the conduct of cash examination, it was noted that for the period August 8,
2019 to December 31, 2022, the Barangay Treasurer did not deposit her
collections regularly. Moreover, comparison of the actual collections and
deposits disclosed that the collections were not deposited intact, as can be seen in
Table 9.

Table 9. Collections Which Were Not Deposited Intact

Collections Amount Amount
Total Cash on
Date during the Deposited/ Retained by
Hand
Month Remitted BT
January 1, 2020 (beginning Balance) ₱ 1,565.00
Jan-19 ₱ 260.00 ₱ 1,825.00 ₱ 1,825.00
Feb-19 655.00 2,480.00 2,480.00
Mar-19 460.00 2,940.00 1,245.00 1,695.00
Apr-19 700.00 2,395.00 2,395.00
May-19 600.00 2,995.00 460.00 2,535.00
Jun-19 11,700.00 14,235.00 11,200.00 3,035.00
Jul-19 100.00 3,135.00 3,135.00
Aug-19 9,240.00 12,375.00 3,775.00 8,600.00
Sep-19 100.00 8,700.00 8,500.00 200.00
Oct-19 100.00 300.00 300.00
Nov-19 100.00 400.00 400.00
Dec-19 400.00 400.00
Jan-20 100.00 500.00 500.00
Feb-20 100.00 600.00 600.00
Mar-20 1,900.00 2,500.00 2,500.00
Apr-20 600.00 3,100.00 2,000.00 1,100.00
May-20 1,100.00 1,100.00 -
Jun-20 700.00 700.00 700.00
Jul-20 300.00 1,000.00 1,000.00
Aug-20 7,204.91 8,204.91 7,404.91 800.00
Sep-20 1,600.00 2,400.00 800.00 1,600.00
Oct-20 1,600.00 1,600.00
Nov-20 400.00 2,000.00 1,800.00 200.00
Dec-20 300.00 500.00 180.00 320.00
Jan-21 3,400.00 3,720.00 2,000.00 1,720.00
Feb-21 2,002.84 3,722.84 1,102.84 2,620.00
Mar-21 2,620.00 1,200.00 1,420.00
Apr-21 2,240.00 3,660.00 3,660.00

35
 Collections Amount Amount
Total Cash on
Date during the Deposited/ Retained by
Hand
Month Remitted BT
May-21 3,660.00 500.00 3,160.00
Jun-21 3,160.00 3,160.00
Jul-21 980.00 4,140.00 4,140.00
Aug-21 2,460.00 6,600.00 700.00 5,900.00
Sep-21 1,220.00 7,120.00 7,120.00
Oct-21 30,600.00 37,720.00 30,000.00 7,720.00
Nov-21 6,377.02 14,097.02 5,897.02 8,200.00
Dec-21 8,200.00 8,200.00
Jan-22 600.00 8,800.00 8,800.00
Feb-22 1,200.00 10,000.00 10,000.00
Mar-22 360.00 10,360.00 10,360.00
Apr-22 10,360.00 10,360.00
May-22 480.00 10,840.00 10,840.00
Jun-22 10,840.00 10,840.00
Jul-22 10,840.00 10,840.00
Aug-22 2,880.00 13,720.00 13,720.00
Sep-22 11,070.36 24,790.36 24,790.36
Oct-22 3,047.00 27,837.36 1,460.00 26,377.36
Nov-22 26,377.36 26,377.36
Dec-22 ₱ 26,377.36 ₱ 10,600.00 ₱ 15,777.36

6.6. It can be seen in Table 9 that, most of the time, there is always a variance or an
amount retained in the custody of the Barangay Treasurer at the end of each
month. Also, for the month of January to February 2019, April 2019, July 2019,
October to December 2019, January to March 2020, June to July 2020, October
2020, April 2021, June to July 2021, September 2021, December 2021, January to
September 2022 and November 2022, no deposits were made by the Barangay
Treasurer despite existence of cash on hand. This practice exposes government
funds to the risk of loss, misuse or misappropriation.

6.7. We recommended that the Barangay Treasurer deposit the full amount of
collections at the Barangay’s authorized government depository bank daily,
weekly or once the collections reach ₱5,000.00, whichever is applicable.

6.8.

36
 PART III

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ UNIMPLEMENTED

AUDIT RECOMMENDATIONS

Of the 30 audit recommendations contained in the CY 2016-2018 and prior years’ Audit
Report on Barangay, 12 were fully implemented while 18 remained not implemented.

Manage Status of Reason/s for

Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
CY Difference between We recommended
2017- Report on Inventory that the Punong
2019 of Property and Barangay:
ARB Equipment (RIPE)
Part II and accounting (1) Request the (1)Not
No.1 records totaling Barangay Implemented
₱2,692,776.31 were Bookkeeper and the
not reconciled as of Municipal
December 31, 2019, Accountant, to
CY thus the accuracy of provide the
2014- the assets under Barangay Inventory
2016 Property, Plant and Team with the
ARB Equipment (PPE) detailed list of
Part II account could not be properties recorded
No.1 ascertained while in the books so that
property records the latter can
were not maintained reconcile the same
by the Barangay with their RIPE.
Treasurer, contrary Any variance that
CY to pertinent will remain should
2011- provisions of the be located,
2013 Manual on the otherwise, the
ARB Financial barangay officials
Part II Management of shall be held liable
Barangays and other for any losses.
pertinent COA
regulations thus, the (2) Require the (2)Not
PPE account balance Designated Implemented
remain unreliable. Barangay Property
Custodian to
prepare and
maintain Property
Cards (PCs) of all
PPEs to include
data on the

37
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
quantity, date of
acquisition, unit
cost, condition and
Barangay official
accountable for the
item;
(3)Not
(3) Request the Implemented
Barangay
Bookkeeper and the
Municipal
Accountant to
maintain the
Property Ledger
Cards and reconcile
the same with the
PCs of the
Designated
Barangay Property
Custodian.
CY Depreciation for We recommended
2017- Barangay PPEs that the Municipal
2019 totaling ₱419,755.34 Accountant (4) (4)Implemented
ARB was not computed instruct and
Part II and deducted from supervise the
No.2 the cost of accounting
depreciable assets, personnel in-charge
contrary to in the computation
Philippine Public of depreciation to
Sector Accounting compute the
Standard (PPSAS) depreciation for
17 thus, the balance each depreciable
of PPE and the total asset of the
non-cash expenses in Barangay from date
the financial of acquisition to
statements of the current year by
Barangay as of preparing a lapsing
December 31, 2019 schedule and (5) (5)Implemented
were not accurately prepare the
presented. necessary
correcting entries.
CY Construction We recommended
2017- materials totaling that the Municipal

38
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
2019 ₱540,153.00 Accountant:
ARB purchased by the
Part II Barangay for (6) Record in
No.3 projects and repairs the Construction (6)Implemented
of structures in Materials Inventory
Calendar Years account, all
2017, 2018 and 2019 construction
were not recorded as materials procured
Inventories but either by Barangay
as a direct expense, Binulho for repair
direct deduction to works and for
Due to other LGUs projects upon
or as Property, Plant receipt;
and Equipment
(PPE), upon (7) Record
payment even issued construction (7)Implemented
though construction materials in the
had not yet started, appropriate expense
contrary to PPSAS account or in the
12, COA Circular Construction In-
2015-009 and Progress (CIP)
Chapter 6 of the account, only when
Manual on the supported with RIS
Financial and Summary of
Management of Supplies and
Barangays thus, the Materials Issued
materials were (SSMI) from the
neither fully Barangay
accounted nor Treasurer;
confirmed if indeed
used for the intended (8) Record the
projects and the appropriate PPE (8)Implemented
reported expenses Account, and
were not supported reverse the CIP
with proof of account, only when
utilization which the project is
encouraged losses completed and
and pilferage. Also, supported with
the PPE account may Inspection Report
include incomplete and Certificate of
projects while Due Completion with
to other LGU pictures of the
account was completed project

39
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
understated. from the barangay
officials concerned;
and

(9) Deduct only

the Due to other
LGU account once (9)Implemented
liquidation of the
Financial
Assistance has been
made.

(10) We also
recommended that,
in subsequent (10)Implemented
procurement, the
Barangay Treasurer
issue a pre-
numbered approved
Requisition and
Issue Slip upon
release of the
materials to the
project in-charge
which should be
summarized in the
SSMI and submit to
the Barangay
Bookkeeper
monthly.

Further, we
recommended that
the Punong
Barangay:

(11) Submit the

Certificate of
Completion and (11)Not
pictures of the Implemented
projects
implemented in CY
2017 to CY 2019

40
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
and other
documents to prove
that the
construction
materials listed in
Table 3 were
actually utilized for
the intended
projects, to avoid
the issuance of
Notice of
Suspension; and

(12) In
subsequent (12)Not
projects, require the Implemented
Barangay Kagawad
who is the
designated
Barangay Inspector
to prepare the
Inspection Report
and the Chairman
of the Committee
on Infrastructure to
prepare the
Accomplishment
Report and
Certificate of
Completion with
pictures of
completed projects,
and submit all
reports to the
Municipal
Accountant upon its
completion.

CY The Barangay We recommended

2017- implemented that the Punong
2019 infrastructure Barangay (13) (13)Not
ARB projects totaling implement projects Implemented

41
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
Part II ₱452,721.00 by by administration
No.4 Administration even only when the
if it has no technical Barangay has the
capability nor the technical capability
equipment required to undertake
to undertake the projects and (14) (14)Implemented
project, contrary to have acquired the
Section 3 of GPPB necessary
Resolution No. 018- equipment in order
2006, thus, the to comply with the
reliability of the conditions required
completed projects in GPPB
and the manner of its Resolution No.
implementation are 018-2006.
doubtful whether it
is in accordance with
prescribed standards.
CY The Annual We recommended
2017- Procurement Plan that the Punong
2019 (APP) prepared in Barangay and the
ARB CYs 2017 to 2019 BAC (15) prepare (15)Implemented
Part II merely listed the the Annual
No.5 Office Supplies to be Procurement Plan
procured by the for all goods and
Barangay, thus infrastructure
goods totaling projects that will be
₱631,889.00 were procured during a
procured despite of particular budget
its non-inclusion to year, and procure
the APP. Moreover, only those included
purchases were not in the APP.
adequately and
timely planned and
were only done on
impulse instead of
considering the long-
term needs of the
residents of the
Barangay, contrary
to Section 7 of the
Revised
Implementing Rules
and Regulations

42
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
(RIRR) of RA No.
9184.
CY Disbursements We recommended
2017- unqualified to be that the Barangay
2019 paid from 20% Development
ARB Development Fund Council through the
Part II totaling ₱365,560.12 Punong Barangay
No.6 were paid out of the as Chairperson, (16)Implemented
said fund, contrary to (16) stop the
DBM-DILG Joint disbursement of
Memorandum expenses for
Circular No. 2017- projects which do
01, thus, the funds not satisfy the
intended for the criteria for
attainment of socio- social/economic
economic and and environmental
environmental development,
benefits for the otherwise the
citizens of the disbursements shall
municipality were be disallowed in
reduced. audit.
CY Minimal utilization We recommended
2017- was made out of the that the Punong
2019 available Barangay and the
ARB ₱353,100.38 LDRRM Council:
Part II LDRRMF
No.7 appropriations as of (17) identify (17)Not
December 31, 2019, specific programs Implemented
contrary to COA and activities on
Circular No. 2012- disaster
002 and Section 21 preparedness,
of RA No. 10211, including
thereby limiting the equipment to be
capacity and procured which can
readiness of the be useful during
Barangay to respond calamities, using
and assist the the list in DILG
constituents during Memorandum
disasters. Circular No. 2012-
73 as guide;

(18) include in
the annual (18)Not

43
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
LDRRMF Implemented
Investment Plan all
programs, projects
and procurement
that will be funded
from the
unexpended prior
years LDRRMF in
addition to the
current year 70%
Mitigation Fund;
and

(19) implement (19)Implemented

during the year the
activities in the
LDRRMIP, in order
to equip the
Barangay Officials
and its constituents
the skill and
knowledge to
prepare and manage
disasters.
CY The Barangay We recommended
2017- Treasurer did not that the Barangay
2019 deposit the full Treasurer (20) (20)Not
ARB amount of her deposit the full Implemented
Part II collections and on amount of
No.8 time, contrary to collections at the
Section 334(a) of Barangay’s
RA No. 7160 and authorized
other existing rules government
and regulations, thus depository bank
exposing barangay within five (5) days
funds to the risk of from receipt thereof
loss thru misuse or or at least once a
misappropriation. month to avoid
administrative
sanctions.
CY The balance of Cash We recommended
2017- in Treasury account that the Barangay
2019 as of December 31, Treasurer and the

44
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
ARB 2019 in the books of Municipal
Part II the Municipal Accountant-
No.9 Accountant was not Designate (21) (21)Implemented
reconciled with the compare and tally
Cashbook of the their respective
Barangay Treasurer, records in order to
contrary to Section detect errors and
111 (2) of PD 1445, effect the necessary
thus errors in both corrections to arrive
records were not at a reliable and
detected and the correct balance of
accuracy of the the said account.
reported balance is
unreliable.
CY The Barangay’s local We recommended
2017- income barely that the Punong
2019 increased in Barangay and other
ARB Calendar Years 2017 Barangay Officials
Part II to 2019 since the (22) enact (22)Implemented
No.10 Barangay continued ordinances that will
to depend mainly on increase income of
its share from the Barangay Binulho
Internal Revenue and monitor its
Allotment (IRA) implementation in
received from the order to collect
National more funds for the
Government and the Barangay.
Barangay officials
did not enact
ordinances to
maximize their
revenue raising
power, thus, funds to
finance various
activities/programs
for development of
the Barangay and its
operational needs
were not enhanced.
CY Disbursements We recommend
2014- amounting to that the barangay
2016 ₱39,313.47 which officials prepare a
ARB are not among the (26) list of (23)Implemented

45
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
Part II Youth Development activities/ programs
No.4 Programs and for the development
Projects were paid of the youth as a
from the 10% SK partner in nation
Fund, contrary to the building and (24) (24)Implemented
Implementing Rules refrain from using
and Regulations of the SK funds for
Republic Act No. expenses which are
10632 thus, the sole not related to Youth
purpose of Youth Development.
Development
programs and
projects were not
attained.
The barangay did not We recommend
appropriate any that the Punong
amount for the Barangay (25) (25)Implemented
implementation of include in its annual
programs, projects budget an
and activities for the appropriation
protection of equivalent to 1% of
children, contrary to its IRA intended for
Republic Act. No. the protection and
9344 and DILG welfare of the
Memorandum children in the
Circular No. 2012- barangay and to
120 thus children’s create a Local
rights within the Council for the
barangay was not Protection of
instituted and Children which will
strengthened. develop, identify
and implement the
programs, projects
and activities using
the said fund
pursuant to RA
9344.
ARB The barangay has We recommend
CY not yet used the that the Punong
2011- Government Barangay (26) (26)Implemented
2013 Electronic should observe the
PART Procurement System IRRA-A of R.A. of
II for the procurement 9184 and require

46
 Manage Status of Reason/s for
Ref. Audit Observations Recommendations ment Implementa Partial / Non-
Action tion Implementation
of its goods, the bids and awards
infrastructure committee to
projects and register with the G-
consultancy services EPS and to use its
contrary to Section facilities in the
8.3.3 of the IRR-A procurement of
of RA-9184, thus, needed goods,
there was no infrastructure
assurance that projects and
government policies consultancy
such as transparency, services in order to
efficiency, uphold fully the
competitiveness and government
public monitoring on policies on
procurement are procurement.
fully upheld.
ARB Validity of the We recommend
CY transactions maybe that the barangay
2011- doubtful due to Record keeper and
2013 inadequate internal the Barangay
Part and accounting Treasurer (27) shall (27)Implemented
III control system ensure that all
adopted within the supporting
barangay, contrary to documents relative
Sec 4(6) and Sec. to the Barangay
123 of PD 1445. transactions are
complete and
properly
accomplished, turn-
over to the
Barangay Treasurer
for submission to
Accounting Office
and to the Office of
the Auditor. The
Barangay Treasurer
shall (28) maintain (28)Implemented
supplies and
materials purchased
in order to monitor
the balances and
utilization thereof.

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