03-Buenavista2022 Executive Summary

EXECUTIVE SUMMARY
A. INTRODUCTION
In 1960, President Carlos P. Garcia, through Executive Order No. 362 proclaimed
Buenavista a municipality. Columbio Celocia was appointed the first town executive. It
may be recalled that Executive Order No. 362 defined the territorial jurisdiction of
Buenavista fixing the boundary at kilometer 76 from Mouth Tawagan to Mouth of Baogo
River and Malihao Creek of Getafe.
Buenavista got its name from the Spanish words “Buena vista” means “good
sight”. Why it was called good sight, the story goes in this time-honored legend. In the
later part of Spanish colonization in the Philippines the site that is today Poblacion was
called “Pangpang” because of cliff found along the shore
The personnel complement of the Municipality in CY 2022 totaled 293, as

follows:
Nature of Appointment to Office Number

Elective Officials 12
Regular 72
Coterminous 2
Job-orders 207
B. HIGHLIGHTS OF FINANCIAL OPERATIONS
Pursuant to Article 3(D) of the Rules and Regulations Implementing the Local
Government Code of 1991, every LGU shall exercise the powers expressly granted, those
necessarily implied therefrom, as well as powers necessary, appropriate or incidental for
i
its efficient and effective governance, and those which are essential to the promotion of
the general welfare.
For the achievement of general, moral, social and economic development of the
municipality, the municipal officials had laid out their priority projects and programs of
activities for calendar year 2022.
Revenues of the municipality were derived from the Internal Revenue Allotment
from the national government, real property taxes, municipal business licenses, receipts
from public market, utilities, waterworks and other economic enterprises, permits, rentals
and other charges. Interest from bank deposits also formed part of the total income.
Comparative analysis of the Statement of Financial Position as graphically

illustrated showed an increase in Assets, Liabilities, and Equity. On the other hand, the
Statement of Financial Performance exhibit an increase in both revenues and expense
which resulted to an increase in surplus.
Statement of Financial Position
550,000,000.00
450,000,000.00
350,000,000.00
In Pesos
250,000,000.00
150,000,000.00
50,000,000.00
Assets Liabilities Equity
2022 543814486.2 79675983.7 464138502.5
2021 463551908.67 66474592.19 397077316.48
Statement of Financial Performance
275,000,000.00
225,000,000.00
175,000,000.00
In Pesos
125,000,000.00
75,000,000.00
25,000,000.00
Total Revenues Total Expenses Surplus/ (Deficit)
2022 288962459.64 208409993.45 80552466.19
2021 206974630.01 151525891.73 55448738.28
ii
The following graph illustrates the comparison of budget versus actual amounts of
revenues, expenditures and surplus for calendar year 2022.
Budget vs Actual
275,000,000.00
In Pesos
225,000,000.00
175,000,000.00
125,000,000.00
75,000,000.00
25,000,000.00
Revenues Expenditures Surplus
Budget 281591879.12 281591879.12 0
Actual 228041577.93 189576305.9 38465272.03
C. SCOPE OF AUDIT
The audit was conducted on the accounts and operations of Municipality of Buenavista,
Bohol in CY 2022. The objectives of the audit were to ascertain the fairness of
presentation and reliability of the financial position and financial performance, determine
whether the programs, projects and activities for the year were attained in efficient,
economical and effective manner. We also conducted compliance audit to check the
validity and propriety of the transactions and adherence to pertinent laws, rules and
regulations.
D. AUDITOR’S OPINION ON THE FINANCIAL STATEMENTS
We rendered a qualified opinion on the fairness of presentation of the financial

statements of the municipality for the year 2022 on the following basis:
1. The existence, completeness and condition of the Property, Plant and

Equipment (PPE) totaling ₱353,792,224.12 (net of depreciation) could not
be ascertained due to non-completion on the conduct of one-time
cleansing by the LGU as required under COA Circular No. 2020-006,
thereby casting doubt on the validity and accuracy of the year-end account
balance.
2. Unserviceable properties were not yet disposed due to the failure of the
Inventory/Disposal Committee to effect the disposal procedures as
provided in Section 79 of Presidential Decree (PD) 1445 and COA
Circular No. 2020-006, thus overstating the Property, Plant & Equipment
(PPE) as of December 31, 2022 and depriving the LGU with additional
income had these been disposed of.
iii
3. Infrastructure Projects were not reclassified/recorded to the proper
Property, Plant and Equipment (PPE) accounts upon completion contrary
to Paragraph 14 of the International Public Sector Accounting Standards
(IPSAS) 17 and Section 50, Volume 1 of the Manual on the New
Government Accounting System (NGAS) For Use in Local Government
Units (LGS), thus, understating the PPE accounts while the related
depreciation expenses were not recognized.
4. Infrastructure projects with net book values totaling ₱4,130,429.47 which

were destroyed by Typhoon Odette are still included under the Property,
Plant and Equipment (PPE) and no request for relief from accountability
for these destroyed projects were processed contrary to Section 151 of
COA Circular 92-386 dated October 20, 1992 and Section 73 of P.D.
1445, thus, overstating the PPE accounts of the municipality.
5. Discounts on Real Property Tax and Special Education Tax were not
recognized in the books in violation of Section 22 of New Government
Accounting System Manual for LGUs Volume I, thus overstating the Real
Property Tax/Special Education Tax Receivable account and Deferred
Income account thereby affecting the fair presentation of the financial
statements.
E. SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS
The following are the summary of significant observations and recommendations

in the audit and/or evaluation of the operations of the Municipality of Buenavista, Bohol
for the year 2022:
1. Purchase of various farm supplies totaling ₱1,486,710.00 intended for

distribution to qualified farmers of LGU- Buenavista were not supported
with distribution list to its intended beneficiaries contrary to Section 4(6)
of PD 1445 thus validity of the transactions cannot be ascertained.
We recommend the Municipal Agriculturist to account for its distribution

and submit to the Audit Team the issuance/distribution list of the various
farm supplies and duly signed acknowledgement receipts. Further, ensure
that subsequent purchases of farm supplies intended for distribution are
supported with a targeted list of recipients and the issuance/distribution list
thereof.
2. Payment of salaries and wages to Job Order (JO) personnel amounting

₱14,402,286.50 were not supported with compete documentary
requirements contrary Item 4.1.3 of COA Circular 2012-001, which
rendered the validity, legality and propriety of the transactions doubtful.
iv
We recommend that management require the submission of
Accomplishment Reports to support the payment of salaries and wages of
these Job Order Personnel. We also recommend revising the Job Order
Contract and including therein the job descriptions and/or statement of
duties and responsibilities of the Job Order Personnel to ensure that
services provided by the Job Order Personnel are not redundant or regular
employees can do that.
SUMMARY OF NOTICE OF SUSPENSIONS, NOTICE OF DISALLOWANCES,

AND NOTICE OF CHARGES ISSUED DURING THE YEAR
Beginning This Period Ending

Balance January 1 to Balance
(As of December 31, 2022 (As of
December 31, December 31,
Issuance Settlement
2021) 2022)
Notice of Suspension ₱4,057,743.70 ₱3,674,210.62 ₱3,674,210.62 ₱4,057,743.70
Notice of
486,942.00 486,942.00
Disallowance
Notice of Charge - -
Total ₱4,544,685.7 ₱3,674,210.62 ₱3,674,210.62 ₱4,544,685.70
0
STATUS OF IMPLEMENTATION BY MANAGEMENT OF PRIOR YEAR’S

AUDIT RECOMMENDATIONS
Of the twenty-six (26) recommendations in CY 2021 and prior years, eleven (11)
were fully implemented, one (1) was partially implemented and fourteen (14) were not
implemented, of which two (2) were reiterated during the period.

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EXECUTIVE SUMMARY

The personnel complement of the Municipality in CY 2022 totaled 293, as

Nature of Appointment to Office Number

B. HIGHLIGHTS OF FINANCIAL OPERATIONS

Comparative analysis of the Statement of Financial Position as graphically

Statement of Financial Position

Statement of Financial Performance

D. AUDITOR’S OPINION ON THE FINANCIAL STATEMENTS

We rendered a qualified opinion on the fairness of presentation of the financial

1. The existence, completeness and condition of the Property, Plant and

4. Infrastructure projects with net book values totaling ₱4,130,429.47 which

E. SIGNIFICANT OBSERVATIONS AND RECOMMENDATIONS

The following are the summary of significant observations and recommendations

1. Purchase of various farm supplies totaling ₱1,486,710.00 intended for

We recommend the Municipal Agriculturist to account for its distribution

2. Payment of salaries and wages to Job Order (JO) personnel amounting

SUMMARY OF NOTICE OF SUSPENSIONS, NOTICE OF DISALLOWANCES,

Beginning This Period Ending

STATUS OF IMPLEMENTATION BY MANAGEMENT OF PRIOR YEAR’S

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