01-municipality of bongao08 audit report

8/2/2019 01-Municipality of Bongao08 Audit Report

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Republic of the PhilippinesCOMMISSION ON AUDIT

Commonwealth Avenue, Quezon City

ANNUAL AUDIT REPORTON THE

MUNICIPALITY OF BONGAOProvince of Tawi-Tawi


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For the Year Ended December 31, 2008

May 13, 2009

HON. ALBERT T. QUE

Municipal Mayor

Municipality of Bongao

Dear Mayor Que:

Pursuant to Section 43 of Presidential Decree No. 1445, otherwise known as theGovernment Auditing Code of the Philippines, we are pleased to transmit the Annual

Audit Report on the accounts and operations of the Municipality of Bongao for theCalendar Year ended December 31, 2008.

The audit findings together with the corresponding recommendations are

discussed in detail in the report. We request that the recommendations be immediatelyimplemented and we will appreciate being informed of the action/s taken thereon within

one (1) month from receipt hereof.

We acknowledge the cooperation extended to our Auditor by the HonorableMayor and his Staff.

Very truly yours,

y of the Chairman:

KHEM N. INOK

Director IVRegional Director

Republic of the Philippines

COMMISSION ON AUDITAutonomous Region in Muslim MindanaoOFFICE OF THE REGIONAL DIRECTOR

ARMM Compound, Cotabato CityTel. # 421-7738 loc 134 Fax # 421-1233

E-mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]


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Copy Furnished:

1. The President

Thru: The Regional SecretaryDepartment of Interior and Local Government

Autonomous Region in Muslim Mindanao

ORC Compound, Cotabato City2. The Regional Director

Bureau of Local Govt. Finance

Regional Office No. IX

Zamboanga City

3. The Regional Director

Department of Budget and Management

Regional Office No. IXZamboanga City

4. The Honorable Governor

Province of Tawi-Tawi

5. The Presiding Officer and Sangguniang Bayan Members

Thru: The SB Secretary



6. File The Regional Director

Commission on Audit


Cotabato City

7. File The Acting Supervising Auditor

Provinces of Tawi-Tawi & Basilan

COA-ARMM

8. File Audit Team Leader


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May 11, 2009

ATTY. KHEM N. INOK

Regional Director

Commission on AuditAutonomous Region in Muslim Mindanao

Cotabato City

Sir:

In compliance with Section 2, Article IX-D of the Philippine Constitution and

pertinent sections of Presidential Decree No. 1445, we conducted a Financial andCompliance Audit on the accounts and operations of the Bongao Municipal Government,

Tawi-Tawi, for the year ended December 31, 2008.

The Audit was conducted to ascertain the propriety of financial transactions and

compliance of the agency to prescribed rules and regulations. It was also made to

ascertain the accuracy of financial records and reports, as well as the fairness of the

presentation of the financial statements.

Our report consists of four parts: Part I Audited Financial Statements, Part II

Detailed Findings and Recommendations, Part III Status of Implementation of PriorYears Recommendations, and Part IV Annexes, which were all discussed with

concerned management officials and staff.

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

statements, as of December 31, 2008, for reasons as stated in the audit certificate.

Our audit was conducted in accordance with generally accepted state auditing

standards and we believe that it provides reasonable bases for the results of audit.

Very truly yours,

NONA A. IMLAN

State Auditor V

Acting Supervising Auditor


COMMISSION ON AUDITAutonomous Region in Muslim Mindanao

OFFICE OF THE SUPERVISING AUDITORARMM Compound, Cotabato City

Tel. # 421-7738 loc 134 Fax # 421-1233E-mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]


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OFFICE OF THE TEAM LEADERMunicipality of Bongao

April 21, 2009

NONA A. IMLAN

State Auditor V/Supervising Auditor

Provinces of Tawi-Tawi and Basilan

Commission on Audit - ARMM

ARMM Complex, Cotabato City

Madam:

In compliance with Section 2, Article IX-D of the Philippines Constitution and pertinent sections

of Presidential Decree No. 1445, we conducted a financial and compliance audit on the accounts and

operations of the Municipal Government of Bongao, Tawi-Tawi for the year ended December 31, 2008.

The audit was conducted to ascertain the propriety of financial transactions and compliance of the

agency with prescribed rules and regulations. It was also made to ascertain the accuracy of the financialrecords and reports, as well as the fairness of the presentation of the financial statements.

Our report consists of four parts: Part I Audited Financial Statements, Part II Detailed

Findings and Recommendations, Part III Status of Implementation of Prior Years Recommendations,and Part IV Annexes, which were all discussed with concerned management officials during the exit

conference held on April 20, 2009.

There is reasonable assurance that the financial statements are free of material misstatement/s and

were prepared in accordance with applicable laws, rules and regulations and in conformity with generally

accepted state accounting principles. However, we emphasize that the LGU failed to conduct physical

inventory of its property, plant and equipment with book value of P131,941,783.14 and did not provide

depreciation on its depreciable PPEs totalingP28,417,040.35.

Our Audit was conducted in accordance with generally accepted state auditing standards and we

believe that it provides reasonable basis for the results of the audit.

Very truly yours,

MAUREEN D. AMIL

State Auditor III

Audit Team Leader



COMMISSION ON AUDIT




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EXECUTIVE SUMMARY

INTRODUCTION

The Municipality of Bongao created on July 01, 1959 by virtue of Executive

Order No. 355. It is a 3rd class municipality consisting of 35 barangays.

The Municipality is under the administrative supervision of the Autonomous

Region in Muslim Mindanao (ARMM) since November 19, 1989, pursuant to Republic

Act No. 6734 enacted on June 08, 1989, otherwise known as The Organic Act of

ARMM.

Like any other local government unit, the Municipality enjoys total independence

in managing, deciding and planning its own administrative, fiscal and development

affairs in conformity with the National Governments thrust for sustainable social andeconomic growth.

As provided by Muslim Mindanao Act No. 25, the Municipality serves as the

dynamic mechanism for developmental processes and effective governance of the

inhabitants within its territorial jurisdiction. In the pursuit of attaining its state purposes,

it exercises power to generate and apply resources, power of eminent domain, corporatepowers and authority to negotiate and secure grants.

HIGHLIGHTS OF OPERATIONS

For the year, the Municipality approved a budget ofP87,187,506.38 out of theestimated funds available for appropriation ofP 87,846,354.00. The budgetary

projection from LGU share on Internal Revenue Allotment (IRA) isP81,264,928.00.

The total income realized during the year is P 84,887,441.55 and the total

expenditures incurred isP85,850,641.49 with a deficit ofP 963,199.94. The actual IRA

received is P 80,975,371.00 and the reported collection from local sources is

P 3,912,070.55.

SCOPE OF AUDIT

A financial and compliance audit was conducted on the accounts and operations

of the Municipality for Calendar Year 2008, using applicable provisions of the NationalGovernment Accounting System Manual (NGAS), the Local Government Code of 1991

(R.A. No. 7160), PD 1445, and such other laws, rules and regulations. The audit

consisted of review of operating procedures, reconciliation, interview with accountable


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and other concerned officials, issuance of demand and letter requests, and other

alternative procedures deemed necessary.


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AUDIT OPINION ON THE FINANCIAL STATEMENTS

The Auditor rendered a qualified opinion on the fairness of presentation of the

financial statements due to the possible effects of adjustments that might have been made

had the LGU conducted a physical inventory of its Property, Plant and Equipment withbook value of P 31,941,783.14 and had it provided depreciation on its depreciable PPEs

totaling P 28,417,040.35.

SIGNIFICANT FINDINGS AND RECOMMENDATIONS

A. Financial and Compliance Audit

1. The validity, existence and correctness of the Property, Plant and Equipmentaccounts totalingP31,941,783.14 could not be ascertained due to the failure of the

LGU to conduct a physical inventory in Calendar Year 2008, as required underSection 124, Volume I of the NGAS Manual, thus affecting the fair presentation of theaccounts in the financial statements.

We reiterate our recommendation for the LGU to conduct periodic physical inventory

of its property, plant and equipment. Items that are beyond economic repair shall be

properly disposed and dropped from the books.

2. Depreciable property, plant and equipment amounting to P28,417,040.35 were not

depreciated due to the absence of property subsidiary ledgers and other records as

basis for the computation of the depreciation, contrary to Section 4, paragraph (o),

Volume I of the NGAS Manual, thus affecting the fair presentation of the Property,Plant and Equipment and expense accounts.

The LGU should exert effort to secure the documents necessary to reconstruct the

PPE accounts so that depreciation for the current and previous years maybe computedto arrive at the correct valuation of the property, plant and equipment. In case the

necessary data could no longer be secured after exhausting all possible means, we

recommend that appraisal of the PPEs be considered in order to establish the correct

book values.

3. Copies of Purchase Orders (POs)/Contracts and Acceptance and Inspection Reports(AIR) covering the procurement of supplies, materials and equipment were not

submitted to the Auditors Office on time for the conduct of evaluation and inspection

of items purchased, contrary to Section A (1-2) of COA Circular No. 96-010 datedAugust 15, 1996 and Section 118 of the NGAS Manual, Volume I, respectively.

We recommend that copies of Purchase Orders/Contracts and Acceptance and

Inspection Reports be submitted to the Auditors Office as required under Section A


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(1-2) of COA Circular No. 96-010 and Section 118 of the NGAS Manual, Volume I.

4. Bank Reconciliation Statements (BRS) on all funds as of December 31, 2008, were

not prepared by the Municipal Accountant, thus casting doubt on the validity and

reliability of the Cash in Bank, Local Currency Current Accounts in the total amount

ofPP 9,134,310.31.

Direct the Municipal Accountant to prepare the monthly bank reconciliation

statement and submit the same to the Office of the Auditor promptly and regularly.

5. The Budget Officer did not maintain Registries of Appropriation, Allotment andObligation for Capital Outlay, Maintenance and Other Operating Expenses,

Personal Services and Financial expenses, thus the Status of Appropriation,

Allotment and Obligation (SAAOb) as of a given date for the year 2008 cannot be

readily prepared.

The Budget Officer should maintain the Registries of Appropriation, Allotment andObligation for each class of expenditure as prescribed to ensure the preparation of the

SAAOb as of a given date anytime and establish a strong internal control onobligation of expenses.

B. Value for Money Audit

6. Evaluation on the utilization ofP 16,195,074.00 for the implementation of various

programs and activities from January to December 2008 under the 20%

Development Fund could not be ascertained due to the absence of accomplishment

reports.

The officials exercising fiscal responsibility over the transactions pertaining to 20%

Development Fund should observe efficiency in planning and monitoring the proper

implementation of programs, projects and activities of the LGU funded out this Fund.

STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT

RECOMMENDATIONS

Of the nine (9) audit recommendations contained in the CY 2007 Annual Audit

Report, two (2) were implemented, one (1) was partially implemented and six (6) remainnot acted. Two (2) of these are reiterated in the current report as they affected the fair

presentation of the financial statements.


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TABLE OF CONTENTS

PART PARTICULARS PAGE

I

AUDITED FINANCIAL STATEMENTS

Audit Certificate 2

Statement of Management Responsibility 3

Consolidated Balance Sheet 4

Consolidated Statement of Income & Expenses 5

Consolidated Statement of Cash Flows 6

Notes to Financial Statements 7

IIFINDINGS AND RECOMMENDATIONS 11

Detailed Findings and Recommendations

Value for Money Audit

III STATUS OF IMPLEMENTATION OF PRIOR

YEARS AUDIT RECOMMENDATIONS19

IV

ANNEXES

A - Consolidated Balance Sheet, by Fund 26

B - Consolidated Statement of Income and

Expenses, by Fund27

C - Consolidated Statement of Cash Flows,

By Fund28

D - Statement of Appropriations, Allotments,

and Balances29

E - Schedule of Property, Plant and Equipment 32

F - Schedule of PPE without Depreciation 33


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PART I

AUDITED FINANCIAL STATEMENTS

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AUDIT CERTIFICATE

The Honorable Mayor



We have audited the accompanying Balance Sheet of the Municipal Government of

Bongao as of December 31, 2008 and the related Statements of Income and Expense and Cash

Flows for the year then ended. These financial statements are the responsibility of the

management of the Municipal Government of Bongao. Our responsibility is to express an

opinion on these financial statements based on our audit.

We conducted our audit in accordance with laws and generally accepted auditing

standards. Those standards require that we plan and perform the audit to obtain reasonable

assurance that the financial statements are free of material misstatement/s. Our audit included

examining on a test basis, evidence supporting the amounts and disclosures in the financial

statements. It also included assessing the accounting principles used and significant estimates

made by management, as well as evaluating the overall financial statement presentation. We

believe that our audit provides a reasonable basis for our opinion.

However, as presented in our comments and observations, the LGU failed to conduct a

physical inventory of its property, plant and equipment as of year-end valued in the books at

P 31,941,783.14. It also did not provide depreciation on its depreciable assets costing

P28,417,040.35. The inadequacy of its records did not permit us to apply adequate alternativeprocedures to determine the validity and the propriety of the property, plant and equipmentaccount.

In our opinion, except for the effect of any adjustments which might have been made had

the LGU conducted a physical count of its property, plant and equipment as of December 31,

2008, and had it provided depreciation on all its depreciable assets, or had the record allowed us

to apply alternative procedures, the financial statements referred to above present fairly, in all

material respect, the financial position of the Municipal Government of Bongao as of December

31, 2008, and the results of its operation for the year then ended, in accordance with applicable

laws, rules and regulations and in conformity with generally accepted state accounting principles.

COMMISSION ON AUDITBy:

NONA A. IMLAN

State Auditor V

Supervising Auditor

February 14, 2009

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COMMISSION ON AUDIT


OFFICE OF THE SUPERVISING AUDITOR

Provinces of Tawi-Tawi & BasilanARMM Complex, Cotabato City

Tel Nos. 421 1233


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MUNICIPAL GOVERNMENT OF BONGAO

CONSOLIDATED BALANCE SHEET

As of December 31, 2008

(With Comparative Figures for CY 2007)

2008 2007

A S S E T S

Current Assets

Cash (Note 5) 9,134,310.31 3,588,892.12Receivables (Note 6) 582,404.09 429,593.35

Inventories (Note 7) 47,334.02 47,334.02

Total Current Assets 9,764,048.42 4,065,819.49

Property, Plant and Equipment (net of

depreciation)Land and Land Improvements 6,137,339.82 6,137,339.82

Buildings 18,841,756.90

14,279,278.0

9Office Equipment, Furniture and Fixtures 4,267,906.88 4,101,104.07

Machinery and Equipment 1,382,882.67 1,865,827.97

Transportation Equipment 685,796.87 888,740.76Other Property, Plant and Equipment 26,100.00 34,800.00

Construction in Progress 600,000.00 190,028.08

Total Property, Plant and Equipment (Note 8) 31,941,783.14

27,497,118.7

9

Other Assets 849,256.24 849,256.24

TOTAL ASSETS 42,555,087.80

32,412,194.5

2

LIABILITIES AND EQUITY

LIABILITIES-Current Liabilities (Note 10) 12,317,926.02 4,422,496.68

Deferred Credits 0.00

Total Liabilities 12,317,926.02 4,422,496.68

EQUITY

Government Equity (Note 11) 30,237,161.78

27,989,697.8

4

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TOTAL LIABILITIES & EQUITY 42,555,087.80

32,412,194.5

2

(See accompanying Notes to Financial Statements)


CONSOLIDATED STATEMENT OF INCOME AND EXPENSE

For the Year ended December 31, 2008


2008 2007

Income

Local Taxes 1,455,497.55 1,232,504.50

Permit and Licenses 128,908.71 291,233.95Service Income 546,892.00 335,444.00Business Income 1,729,319.00 1,217,528.00

Other General Income 81,026,824.29 58,859,590.47

TOTAL INCOME 84,887,441.55 61,936,300.92

N Less: Expenses

Personal Services 24,481,277.83 22,744,528.68

Maintenance and Other

Operating Expenses 55,869,804.39 34,921,655.33Financial Expenses 7,077.00 91.39

TOTAL EXPENSES 80,358,159.22 57,666,275.40

Operating Income 4,529,282.33 4,270,025.52

Add: Subsidies from Other NGAs 0.00 0.00

Total 4,529,282.33 4,270,025.52

Less: Subsidies to LGUs 0.00 0.00

Subsidies to LGUs 5,492,482.27 5,879,860.63

Total 5,492,482.27 5,879,860.63

NET INCOME (963,199.94)(1,609,835.11

)

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CONSOLIDATED STATEMENT OF CASH FLOW

For the Year Ended December 31, 2008


2008 2007

Cash Flow from Operating Activities:

Cash Inflows:

Collection from taxpayers 1,455,497.55 2,240,451.55

Share from Internal Revenue Collections 80,975,371.00

53,450,826.0

0

Receipts from Sale of goods or services 2,405,119.71 2,136,872.50Other Receipts 7,397,840.09 9,326,169.74

Total Cash Inflow 92,233,828.3567,154,319.7

9

Cash Outflows:

Payments-

To Suppliers/Creditors 49,917,667.01

44,568,691.9

6

To employees 31,491,529.6422,744,528.6

8

Other Expense 428,755.70 169,377.87

Total Cash Outflow 81,837,952.35

67,482,598.5

1

Net Cash from Operating Activities 10,395,876.00 (328,278.72)

Cash Flows from Investing Activities:

Cash Inflows

From Sale of Property, Plant &Equipment 0.00 0.00

Cash OutflowsTo Purchase Property, Plant & Equipment 4,850,457.81 51,000.00

Net Cash from Investing Activities

(4,850,457.81

) (51,000.00)

Cash Flows from Financing ActivitiesCash Inflows

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From Acquisition of Loan 0.00 0.00

Cash Outflows

Payment of Loan Amortization 0.00 0.00

Net Cash from Financing Activities 0.00 0.00

Net Increase in Cash 5,545,418.19 (379,278.72)Cash at Beginning of the Period 3,588,892.12 3,968,170.84

Cash at the End of the Period 9,134,310.31 3,588,892.12

NOTES TO FINANCIAL STATEMENT

Note 1 General/Agency Profile

The Municipality of Bongao was created on July 01, 1959 by virtue of Executive

Order No. 355. It is a third (3rd) class municipality, consisting of 35 Barangays. It is the

premier commercial center of the Province of Tawi-Tawi and the seat of the Provincial

Government.

The Municipality is under the administrative supervision of the Autonomous

Region in Muslim Mindanao (ARMM) since November 19, 1989, pursuant to RepublicAct No. 6734 enacted on June 08, 1989, otherwise known as the Organic Act of

ARMM.

Note 2 Basis of Financial Statements Presentation

The financial statements have been prepared in accordance with the Generally

Accepted State Accounting Principles and Standards.

Note 3. Summary of Significant Accounting Policies:

3.1 The LGU uses a modified accrual basis of accounting. Expenses are

recognized when incurred and reported in the financial statements in the

period to which they relate. Income is on accrual basis except fortransactions where accrual basis is impractical or when other methods may

be required by law. Real property taxes are accounted following the

modified accrual method of accounting and the cash basis of accounting isused for all other taxes, fees, charges and other revenues.

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3.2 Petty Cash Fund (PCF) account is maintained under the Imprest System.

All replenishments are directly charged to the expense account. The PCF is

not used to purchase regular inventory items for stock.

3.3 Property, Plant and Equipment are carried at historical cost. Properties of

the government, which are used by the general public, are dropped fromProperty, Plant & Equipment account and recorded in the Registry of

Public Infrastructure/Reforestation Projects.

3.4 The straight-line method of depreciation is followed. Public

Infrastructure/Reforestation Project not used in operation are not subject to

depreciation. Depreciation is not likewise charged to Infrastructure projects

under construction.

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3.5 For assets under construction, all related expenses incurred during the

construction of the project are capitalized and those incurred after the

construction are charged against the operating cost.

3.6 Payable accounts are recognized and recorded in the books of accounts

only upon acceptance of the goods, inventory or assets and rendition ofservices to the local government unit.

3.7 Financial expenses such as bank charges and interest on loans areseparately classified from MOOE.

Note 4. Correction of fundamental errors

Fundamental errors of prior years are corrected by using the Prior Years Adjustments

account. Errors affecting current years operation are charged to the current years

accounts.

Note 5. Cash

This account is broken down as follows:

Account NameBalance

Dec. 31, 2007

Addition/

(Reduction)

Balance

Dec. 31, 2008

Cash in Vault 966,730.34 (966,730.34) 0.00

Cash-Disbursing Officer 178,268.00 (178,268.00) 0.00

Petty Cash Fund 5,000.00 0.00 5,000.00

Cash in Bank LCCA 2,438,893.78 6,690,416.53 9,129,310.31

Total P 3,588,892.12 5,545,418.19 P 9,134,310.31

Note 6. Receivables


Account NameBalance

Dec. 31, 2007

Addition/

(Reduction)

Balance

Dec. 31, 2008

Accounts Receivable 60,000.00 (60,000.00) 0.00

Due from Officers and employees 13,729.11 0.00 13,729.11

Due from GOCC 100.00 (100.00) 0.00

Due from LGUs 209,404.12 (209,404.12) 0.00

Due from Other Funds 0.00 422,314.86 422,314.86

Other Receivables 146,360.12 0.00 146,360.12

Total P 429,593.35 P 152,810.74 P 582,404.09

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Note 7. Inventories

The total inventories of P 47,334.02 pertain to account 156 Accountable FormsInventory.

Note 8. Property, Plant and Equipment

This account consists of :

PARTICULARSBalance

Dec. 31, 2007

Addition/

(Reduction)

Balance

Dec. 31, 2008

Land P 300,000.00 P 0.00 P 300,000.00

Land Improvements 5,837,339.82 0.00 5,837,339.82

Office Buildings 5,762,163.28 1,985,364.00 7,747,527.28

Market & Slaughterhouse 8,082,114.81 0.00 8,082,114.81

Other Structures 435,000.00 2,577,114.81 3,012,114.81

Office Equipment 156,179.26 135,740.00 291,919.26

Furniture and Fixtures 3,851,416.38 86,995.00 3,938,411.38

IT Equipment and Software 587,774.80 65,244.00 653,018.80

Const.& Heavy Equipment 3,164,338.50 0.00 3,164,338.50

Motor Vehicles 711,000.00 0.00 711,000.00

Other Transportation Equipment 844,438.36 0.00 844,438.36

Other Property, Plant &

Equipment 87,000.00

0.00

87,000.00Construction in Progress 190,028.08 409,971.92 600,000.00

Total P30,008,793.29 5,260,429.73 P35,269,223.02

Accumulated Depreciation 2,511,674.50 815,765.38 3,327,439.88

Net Amount P27,497,118.79 P 3,327,439.88 P31,941,783.14

Note 9. Depreciation

The LGU failed to provide the depreciation on its Property, Plant and Equipment

with total acquisition cost of P 28,417,040.35 due to the absence of pertinent documentsto support the computation.

Note 10. Current Liabilities

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PARTICULARSBalance

Dec. 31, 2007

Addition/

(Reduction)

Balance

Dec. 31, 2008

Due to Officers and Employees P 28,758.93 0.00 P 28,758.93Due to BIR 1,796.22 9,808.40 11,604.62

Due to GSIS 23,348.20 (947.13) 22,401.07

Due to Pag-IBIG 21,475.61 (180.68) 21,294.93

Due to PHILHEALTH 3,525.00 0.00 3,525.00

Due to NGAs 2,958,206.95 7,234,446.34 10,192,653.29

Due to LGUs 409,259.23 294,576.77 703,836.00

Due to Other Funds 209,404.12 212,910.74 422,314.86

Guarantee Deposits Payable 284,754.00 0.00 284,754.00

Performance/Bidders/BailBonds Payable

104,801.50 145,000.00 249,801.50

Other Payable 377,166.92 (185.10) 376,981.82

Total P 4,422,496.68 7,895,429.34 P 12,317,926.02

Note 11. Government Equity


PARTICULARS AMOUNT

Balance, Beginning P 27,989,697.84

Add: Transfer of completed

projects - General Fund P 3,190,793.88

Prior Years Adjustment 19,870.00

-------------------3,210,663.88

Total P 31,200,361.72

Add/(Less): Retained Operating Surplus

Current Operations (Net Income per Statement

of Income and Expense) (963,199.94)Balance, End P 30,237,161.78

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PART II

FINDINGS AND RECOMMENDATIONS

Detailed Findings and Recommendations

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A. Financial and Compliance

1. The validity, existence and correctness of the Property, Plant and Equipment

accounts totaling P 31,941,783.14 could not be ascertained due to the failure of the

LGU to conduct a physical inventory in Calendar Year 2007, as required under Section124, Volume I of the NGAS Manual, thus affecting the fair presentation of the

accounts in the financial statements.

As of year-end, the LGU failed to conduct a physical inventory of its property,

plant and equipment valued at P 31,941,783.14 (Annex A). It also failed to prepare

a periodic Report on the Physical Count of Property, Plant and Equipment (RPCPPE).

Subsidiary ledgers maintained are only on those PPEs acquired during the currentadministration.

The failure of the LGU to conduct a physical inventory is a gross violation of

Section 124, Volume I of the NGAS Manual which requires that physical count ofproperty, plant and equipment shall be made annually and reported in the Report on

the Physical Count of Property, Plant and Equipment (RPCPPE). The report shall besubmitted to the Auditor not later than January 31 of each year.

Similarly, Section 156 of COA Circular No. 92-386 dated October 20, 1992,requires the local chief executive (LCE) to create a committee to conduct an annual

physical inventory of all supplies and property under his control. The committee

shall be composed of the representative of the LCE, the treasurer and property or

supply officer or accountable officer, as members.

Due to the failure of the LGU to conduct physical inventory, the existence,condition and whereabouts of the fixed assets cannot be correctly ascertained andunserviceable property, if there is any, cannot be dropped from the books.

Management Comment:

The audit finding is well-taken. An inventory will be conducted not later than

June 30, 2009.

Recommendation:

We reiterate our recommendation for the LGU to conduct periodic physicalinventory of its property, plant and equipment. Items that are beyond economic

repair shall be properly disposed and dropped from the books.

2. Depreciable property, plant and equipment amounting to P 28,417,040.35were not

depreciated due to the absence of property subsidiary ledgers and other records as

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basis for the computation of the depreciation contrary to Section 4, paragraph (o),

Volume I of the NGAS Manual, thus affecting the fair presentation of the

Property, Plant and Equipment and expense accounts.

Section 4, paragraph (o), Volume I of the NGAS Manual provides that:

Depreciation. The straight-line method shall be used. A residual

value equivalent to ten percent (10 %) of the cost shall be set-up and

depreciation shall start on the second month after purchase/completion ofthe property, plant and equipment (PPE). Public infrastructures shall not

be charged any depreciation.

We have noted in our audit that similar to Calendar Years 2005 to 2007, therewas no provision for the depreciation of most of the depreciable property, plant and

equipment of the LGU for the current year (Annex B). This is due to the absence

of property subsidiary ledgers and other records/documents evidencing the

acquisition of the PPEs, which could have served as basis in the computation ofdepreciation.

The failure of the LGU to provide depreciation on depreciable PPEs resulted

in the overstatement of the book value of the PPEs.

Management Comment:

Depreciation on PPEs purchased during the current administration can be

provided. The Municipal Accountant will initiate the reconstruction of the PPEaccounts.

Recommendation:

The LGU should exert effort to secure the documents necessary to reconstruct

the PPE accounts so that depreciation for the current and previous years maybecomputed to arrive at the correct valuation of the property, plant and equipment. In

case the necessary data could no longer be secured after exhausting all possible

means, we recommend that appraisal of the PPEs be considered in order to establish

the correct book values.

3. Copies of Purchase Orders (POs)/Contracts and Acceptance and Inspection

Reports (AIR) covering the procurement of supplies, materials and equipment were

not submitted to the Auditors Office on time for the conduct of evaluation and

inspection of items purchased, contrary to Section A (1-2) of COA Circular No. 96-

010 dated August 15, 1996 and Section 118 of the NGAS Manual, Volume I,

respectively.

Section A (1-2) of COA Circular No. 96-010 dated August 15, 1996 provides

that:

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1. A copy of any letter or purchase order, irrespective of amount, and all

supporting documents thereto shall be submitted to the unit Auditor

concerned within five (5) days from issuance. Xxx

2. The agency official responsible for accepting deliveries of procured

items, shall, within twenty-four (24) hours from such acceptance,notify the Auditor of the time and date of the scheduled deliveries. In

the case of partial delivery of any item in the P.O., the copy to be

submitted shall indicate which items have been delivered, and whichhave not.

Corollary thereto, Section 118 of the New Government Accounting System

(NGAS) Manual, Volume I provides that:

Deliveries of items purchased by the local government units shall beaccepted first by the general services officer before inspection.

Inspection of purchases shall be made by the authorized inspector/s for conformity with specification in the order. Acceptance andinspection shall be made using the Acceptance and Inspection Report

(AIR).

The furnishing of copies of Purchase Orders/Contracts, Acceptance and

Inspection Reports, etc., will enable the Auditors Office to conduct timely evaluationof contracts/purchase orders and verification of the procured items. Weakness or

deficiencies noted in the course of audit can be communicated immediately to

management for appropriate remedial action.

For CY 2008, copies of Purchase Orders were submitted to the Auditors

Office after the prescribed period. Contracts and Acceptance and Inspection Reportswere not furnished the Auditors Office.

Management Comment:

The LGU has no regular Supply Officer. In the meantime, the Municipal

Treasurer will take charge of the submission of the Purchase Orders/Contracts,

Acceptance and Inspection Reports to the Auditors Office.

Recommendation:

We recommend that copies of Purchase Orders/Contracts and Acceptance and

Inspection Reports be submitted to the Auditors Office as required under Section A

(1-2) of COA Circular No. 96-010 and Section 118 of the NGAS Manual, Volume I.

4. Bank Reconciliation Statements (BRS) on all funds as of December 31, 2008, were

not prepared by the Municipal Accountant, thus casting doubt on the validity and

15


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reliability of the Cash in Bank, Local Currency Current Accounts in the total

amount of P 9,134,310.31.

Based on the Balance Sheets as of December 31, 2008, the balances of the

Cash in Bank-Local Currency Current Account are as follows:

Fund A m o u n t

General Fund P 31,563.19

Trust Fund 9,102,747.12SEF 0.00

Total P 9,134,310.31

However, the accuracy and validity of the cash accounts cannot be ascertained

as there were no Bank Reconciliation Statements prepared by the Municipal

Accountant during the (12) months.

The balances of the Cash in Bank-LCCA on all funds were derived from the

unadjusted balance of the general ledgers. No adjustments were made to reconcile theamounts with the bank balances arising from outstanding checks, bank debit and

credit memos, and other reconciling items.

Consequently, the Cash in Bank-LCCA as of year-end may either beoverstated or understated.

Section 74 of PD 1445, States:

At the close of each month, depositories shall report to the agency head, in

such form as he may direct the condition of the agency account standing on

their books. The head of the agency shall see to it that reconciliation is madebetween the balance shown in the reports and the balance found in the books

of the agency.

COA Circular 96-011 dated October 02, 1996 states:

3.2 The Local Accountants shall within ten (10) days from receipt of the BankStatement reconcile the same (BS) with the General Ledger (GL) and

prepare the BRS in five (5) copies, xxxx

3.3 The accountant shall draw journal vouchers to record all valid reconcilingitems that require adjustment and correction in the GL.

3.4 The duplicate and quadruplicate copies of the BRS including the paid

checks, original copies of the debit/credit memos, shall be submitted to the

auditor concerned for verification within ten (10) days from receipt afterthe end month.

3.5 The Auditor shall verify the duly certified BRS and supporting schedules

within ten (10) days from receipt of the same.

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3.6 The Auditor shall after verification, affix his signature on the BRS under

the notation VERIFIED AND FOUND CORRECT and furnish the

COA Director concerned the duly verified BRS on a monthly basis orwhere there is an urgent need for the same.xxx

A bank reconciliation statement serves as a basis in determining the correctcash in bank balance of the LGU and prove the integrity of the cash balance in the

books of accounts.

Management Comment:

The audit finding is well-taken.

Recommendation:

Direct the Municipal Accountant to prepare the monthly bank reconciliation

statement and submit the same to the Office of the Auditor promptly and regularly.

5. The Budget Officer did not maintain Registries of Appropriation, Allotment and

Obligation for Capital Outlay, Maintenance and Other Operating Expenses,

Personal Services and Financial expenses, thus the Status of Appropriation,

Allotment and Obligation (SAAOb) as of a given date for the year 2008 cannot be

readily prepared.

The approved appropriation for the year 2008 is P 87,187,506.38 broken

down as follows:

a. Personal Services P 25,014,994.90

b. MOOE 61,444,602.48c. Capital Outlay 727,909.00

--------------------

Total P87,187,506.38============

Audit observation made on the Budget Office records disclosed that each class

of expenditure mentioned above did not have the corresponding registry which is aviolation of Section 18 of NGAS, Volume II which states:

Registry of Appropriations, Allotments and Obligations (RAAO) TheRegistry of Appropriations, Allotments and Obligations is prepared for

function/program/project, allotment class, current/continuing

appropriations and fund. This record shall be maintained xxx to monitorappropriations, allotments received and the obligations incurred against

said allotments. The balance is extracted every time an entry is made to

prevent incurrence of obligations in excess of allotments received or

approved appropriations.

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implementation of these programs could not be established. There is no factual basis

to determine whether these programs had contributed to the development of the

Municipal and the general welfare of its inhabitants due to the non-availability ofpertinent documents and reports serving as success indicators such as:

1. Accomplishment report and progress report on the programimplementation with tangible and quantifiable data to support the

attainment of its objectives.

2. Monitoring reports on the accomplishment of activities related

to the implementation of said programs/projects/activities.

Management Comment:

The Office of the Municipal Engineer is used to prepare an Annual

Accomplishment Report. The Report for the year will be submitted to the Auditor

within five (5) days.

Recommendation:

The officials exercising fiscal responsibility over the transactions pertaining to

20% Development Fund should observe efficiency in planning and monitoring the

proper implementation of programs, projects and activities of the LGU funded outthis Fund.

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PART III

STATUS OF PRIOR YEARS AUDIT

RECOMMENDATIONS

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Of the nine (9) audit recommendations contained in the CY 2007 Annual Audit

Report, two (2) were implemented, one (1) was partially implemented and six (6) remain

not acted. Two (2) of these are reiterated in the current report as they affected the fairpresentation of the financial statements.

Audit Observation Recommendation Ref Management

Action

Statusof Imple-

mentation

Reason forPartial/Non-

Implementation

1. The validity,

existence and correct-

ness of the Property,

Plant and Equipment

accounts totaling

P 27,497,118.79could not be

ascertained due to the

failure of the LGU to

conduct physical

inventory in Calendar

Year 2007, as

required under Section 124, Volume

I of the NGAS

Manual, thus

affecting the fair

presentation of the

accounts in the

financial statements.

We reiterate our

recommendation for

the LGU to conduct

periodic physical

inventory of its

PPEs. Items that are

beyond economic

repair shall be

properly disposed

and dropped from thebooks.

2007

AAR

Not

implemented.

Reiterated as

Finding # 1.

2. Depreciable

property, plant and

equipment amounting

to P 23,854,561.54

were not depreciateddue to the absence of

property subsidiary

ledgers and other

records as basis for

the computation of

the depreciation,

contrary to Section 4,

paragraph (o),Volume I of the

NGAS Manual, thus

affecting the fair

presentation of the

Property, Plant and

Equipment and

expenseaccounts.

We recommend that

depreciation be

provided and the

related accumulated

depreciationaccounts for all

depreciable assets be

updated in

accordance with the

NGAS Manual, for a

realistic presentation

of the value thereof

in the financial state-ments. Also,

manage-ment must

exert effort to secure

the documents

necessary to

reconstruct the PPE

accounts so that

depreciation for thecurrent and previous

years maybe

computed to arrive at

the correct valuation

of the property, plant

and equipment.

2007

AAR

Not

implemented

Reiterated as

Finding # 2

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Action

Status

of Imple-

mentation

Reason for

Partial/Non-

Implementation

3. OtherPayable

amounting to P377,166.92 had

remained

outstanding for

more than two

(2) years contrary

to the provisions

of Section 98 of

Presidential

Decree (PD)

1445. Theabsence of

subsidiary

ledgers castdoubt on its

validity.

Require the Muni-

cipal Budget Officer

and Municipal

Accountant to deter-

mine all obligationswith valid claims and

revert to the

unappro-priated

surplus (Government

Equity Account) the

accounts payable that

has no valid or

existing creditors orclaimants

considering the lapse

of time.

2007

AAR Implemented

4. The failure of theMunicipal Treasurer

to submit the

Consolidated Reportof Accountability for

Accountable Forms

(CRAAF) to the

Office of the Auditor

within five (5) daysafter the end of the

month as requiredunder Section 51,

Volume II of the

NGAS Manual

hindered the prompt

detection of

unaccounted and loss

of accountable forms.

Require theMunicipal Treasurer

to designate a regular

personnel who willtake charge of the

preparation of the

CRAAF to ensure

prompt submission to

the Office of theAuditor.

2007AAR

Implemented

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Action

Status

of Imple-mentation

Reason for

Partial/Non-Implementation

5. Casual employees

were utilized/assigned

to perform collecting

functions due tomanpower

constraints, contraryto Section 65 of the

Government

Accounting And

Auditing Manual

(GAAM), Volume I.

We advise the

Municipal Treasurer

to strictly comply

with Section 65 ofGAAM, Volume I,

such that onlyregular employees

should be designated

as collectors to

ensure

accountability. We

recommend to the

Municipal Mayor to

fill the vacant positions in the

Office of the

Municipal Treasurer,as these are

collection related, to

prevent manpower

shortage.

2007

AAR

Not

Implemented

6. The balance of the

receivable accounts atyear-end is unreliable

due to the failure of

the management torecognize in the

books the Real

Property Tax (RPT)

and SpecialEducation Tax (SET)Receivables as

required under

Section 20, NGAS

Manual, Volume I

The Municipal

Assessor shouldupdate the Master

List of Real Property

Taxpayers to providethe Municipal

Treasurer an accurate

basis in the prepa-

ration of a certified

list showing thenames of taxpayers

and the amount dueand collectible for

the year. The

certified list shall be

the basis of the

Municipal

Accountant in settingup the RPT and SET

Receivables asrequired under

Section 20, NGAS

Manual, Volume I.

2007

AAR

Not

implemented

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Action

Status

of Imple-

mentation

Reason for

Partial/Non-

Implementation

7. Purchase of office

supplies and other

supplies during the

year amounting to

P 308,495.44 and

P 187,254.38,respect-tively, were

directly issued to end

users and charged to

the expense account

with-out coursing

through the inventory,

contrary to Section114, Chapter 7,

Volume I of the

NGAS Manual.Stock Cards and

Supplies Ledger

Cards were likewise

not maintained and

Summary of Suppliesand Materials Issued

were not prepared,

contrary to Sections

119 121 of the

same Manual.

The LGU should

adopt the perpetual

inventory method in

recording purchase

of supplies andmaterials. The LCE

should direct the

Municipal

Accountant and

Treasurer to prepare

and maintain records

and reports as

required by the NGAS Manual to

ensure that the

correct amount of

inventory andexpense accounts are

taken up in the

books.

2007

AAR

Not

implemented

8. The LGU failed to

submit regularly on

due dates the

Reports of

Collections andDisbursements toge-

ther with the receipts

and paid vouchers to

the Auditor, as

required under COA

Circular No. 94-006,

as amended, This

resulted to the delayin the issuance of

notices of suspen-

sions, charges anddisallowances and

consequently, the

issuance of the

Certificate of Settle-

ment and Balances.

Direct the Municipal

Treasurer and the

Accountant to submit

regularly on due

dates the Report ofCollections and

Disbursements

together with the

receipts and paid

vouchers and

documents

evidencing their

transactions, asrequired by COA

Circular No

2007

AAR

Partially

implemented

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Action

Status

of Imple-

mentation

Reason for

Partial/Non-

Implementation

9. Non remittance of

Real Property Tax

Share of ARMM thus

incurring a liability

amounting of P276,888.52 as of

December 31, 2004 in

disregard of Sec. 108Chapter 4 of GAAM

Vol. I and sec. 69 of

PD 1445.

Direct the Municipal

Treasurer to remit

promptly the share of

ARMM on Real

Property Taxcollected in

consonance with

Section 69 of PD

1445.

2007

AAR

Not

implemented

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PART IV - ANNEXES

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Annex A


CONSOLIDATED BALANCE SHEET


Totals General Fund Trust Fund SEF

A S S E T S

Current Assets

Cash (Note 5) 9,134,310.31 31,563.19 9,102,747.12 0.00

Receivables (Note 6) 582,404.09 13,729.11 568,674.98

Inventories (Note 7) 47,334.02 47,334.02 0.00 0.00

Total Current Assets 9,764,048.42 92,626.32 9,102,747.12 568,674.98

Property, Plant and Equipment

(net of depreciation)

Land and Land Improvements 6,137,339.82 6,137,339.82 0.00 0.00

Building 18,841,756.90 18,841,756.90 0.00 0.00

Office Equipment, Furniture

and Fixtures 4,267,906.88 4,267,906.88 0.00 0.00

Machinery and Equipment 1,382,882.67 1,382,882.67 0.00 0.00

Transportation Equipment 685,796.87 685,796.87 0.00 0.00

Other Property, Plant and

Equipment 26,100.00 26,100.00

Construction in Progress 600,00.00 0.00 600,000.00 0.00

Total Property, Plant and

Equipment (Note 8) 31,941,783.14 31,341,783.14 600,000.00 0.00

Other Assets 849,256.24 849,256.24 0.00

TOTAL ASSETS 42,555,087.80 32,283,665.70 9,702,747.12 568,674.98

LIABILITIES AND EQUITY

LIABILITIES-

Current Liabilities (Note 10) 12,317,926.02 2,615,178.90 9,702,747.12 0.00

Deferred Credits 0.00 0.00 0.00 0.00

Total Liabilities 12,317,926.02 2,615,178.90 9,702,747.12 0.00

EQUITY

Government Equity (Note 11) 30,237,161.78 29,668,486.80 0.00 568,674.98

TOTAL LIABILITIES &

EQUITY 42,555,087.80 32,283,665.70 9,702,747.12 568,674.98

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Annex BMunicipal Government of BONGAO

CONSOLIDATED STATEMENT OF INCOME AND EXPENSE


Totals General Fund

Trust

Fund SEF

Income

Local Taxes 1,455,497.55 1,073,208.94 0.00

382,288.6

1

Permit and Licenses 128,908.71 128,908.71 0.00 0.00

Service Income 546,892.00 546,892.00 0.00 0.00

Business Income 1,729,319.00 1,729,319.00

Other General Income 81,026,824.29 81,026,824.29 0.00 0.00

TOTAL INCOME 84,887,441.55 84,505,152.94 0.00

382,288.6

1

Less: Expenses

Personal Services 24,481,277.83 24,481,277.83 0.00 0.00

Maintenance and Other

Operating Expenses 55,869,804.39 55,869,804.39 0.00 0.00

Financial Expenses 7,077.00 7,077.00 0.00 0.00

TOTAL EXPENSES 80,358,159.22 80,358,159.22 0.00 0.00

Operating Income 4,529,282.33 4,146,993.72 0.00

382,288.6

1

Add: Subsidies from NationalGovt 0.00 0.00 0.00 0.00

Total 4,529,282.33 4,146,993.72 0.00

382,288.6

1

Less: Subsidies to Other LGUs 5,492,482.27 5,492,482.27 0.00 0.00

NET INCOME (963,199.94) (1,345,488.55) 0.00

382,288.6

1

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Annex CMunicipal Government of BONGAO

CONSOLIDATED STATEMENT OF CASH FLOWS


TOTALS

General

Fund

TRUST

FUND SEF

Cash Flow from Operating

Activities:

Cash Inflows:

Collection from taxpayers 1,455,497.55 1,073,208.94 0.00 0.00

Share from Internal Revenue

Collections 80,975,371.00 80,975,371.00 0.00 0.00

Receipts from Sale ofGoods/services 2,405,119.71 2,405,119.71 0.00 0.00

Other Receipts 7,397,840.09 51,453.29 7,346,386.80 0.00

Total Cash Inflow 92,933,828.35 84,505,152.94 7,346,386.80 0.00

Cash Outflows:

Payments-

To Suppliers/Creditors 49,917,667.01 49,317,667.01 600,000.00 0.00

To employees 31,491,529.64 31,491,529.64 0.00 0.00

Other Expense 428,755.70 0.00 13,255.82 415,529.88

Total Cash Outflow 81,837,952.35 80,809,196.65 613,255.82 415,529.88

Net Cash from Operating

Activities 10,395,876.00 3,695,956.29 6,733,160.98 (33,241.27)

Cash Flows from Investing

Activities:

Cash Inflows

From Sale of Property,Plant and Equipment 0.00 0.00 0.00 0.00

Cash OutflowsTo Purchase Property,

Plant and Equipment 4,850,457.81 4,850,457.81 0.00 0.00

Net Cash from Investing

Activities (4,850,457.81)

(4,850,457.81

) 0.00 0.00

Cash Flows from Financing

ActivitiesCash Inflows 0.00 0.00 0.00 0.00

Cash Outflows 0.00 0.00 0.00 0.00

Net Cash from FinancingActivities 0.00 0.00 0.00 0.00

Net Increase in Cash 5,545,418.19

(1,154,501.52

) 6,733,160.98 (33,241.27)

Cash at Beginning of the Period 3,588,892.12 1,186,064.71 2,369,586.14 33,241.27

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Cash at the End of the Period 9,134,310.31 31,563.19 9,102,747.12 0.00

Annex D

Municipal Government of BONGAOSTATUS OF APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS(Current Legislative Appropriation)

(Consolidated)As of December 31, 2008

UnobligFunction/Program/Project/A Appropria Allotme Obligati Balance

GENERAL PUBLIC SERVICES

Executive Services (Mayor)General Administration

Personal Services 6,917,251. 6,852,70 6,852,70 0.00

MOOE 2,340,000. 2,329,02 2,329,02 0.00Capital Outlay 92,814.00 92,814.0 92,814.0

Vice-MayorPersonal Services 959,290.94 959,290. 959,290. 0.00MOOE 1,500,000. 1,500,00 1,500,00 0.00Capital Outlay 0.00 0.00 0.00 0.00

Legislative ServicesLegislation

Personal Services 5,005,180. 5,005,18 5,005,18 0.00MOOE 1,950,000. 1,940,83 1,940,83 0.00Capital Outlay 500,000.00 500,000. 250,200. 249,800.

Secretary to Sangguniang

Personal Services 1,176,759. 1,176,75 1,176,75 0.00MOOE 433,503.59 433,503. 433,503. 0.00

Planning and DevelopmentGeneral Administration


Civil Registry (CivilGeneral Administration

Personal Services 720,583.79 720,583. 720,583. 0.00MOOE 179,467.67 179,467. 179,467. 0.00

Budgeting Services (Budget

General AdministrationPersonal Services 977,014.55 977,014. 977,014. 0.00MOOE 265,082.17 265,082. 265,082. 0.00

Accounting ServicesGeneral Administration


Treasury Services

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General AdministrationPersonal Services 3,350,081. 3,350,08 3,350,08 0.00MOOE 550,000.00 550,000. 550,000. 0.00Capital Outlay 135,095.00 135,095. 135,095.

Assessment of RealGeneral Administration


Auditing Services (Auditor)General Administration

MOOE 350,000.0 350,000.0 350,000.0 0.00

Information ServicesGeneral Administration

MOOE 338,003.3 338,003.0 338,003.0 0.00

Legal ServicesGeneral AdministrationMOOE 104,600.0 104,600.0 104,600.0 0.00

MCTCMOOE 50,000.00 50,000.00 50,000.00 0.00

Police ServicesGeneral Administration

MOOE 760,000.0 758,459.9 758,459.9 0.00

Fire Protection ServicesGeneral Administration

MOOE 195,583.3 195,583.3 195,583.3 0.00

Repair and Maintenance of GovernmentGeneral Administration

MOOE 9,000,000 9,000,000 9,000,000 0.00

SUB-TOTAL 42,795,09 42,708,86 42,459,06 249,800

EDUCATION, CULTURE,MANPOWER DEVELOPMENTMaintenance of Sports Centers, Athleticand Playgrounds

SportsMOOE 2,245,000 2,243,368 2,243,368 0.00

SUB-TOTAL 2,245,000 2,243,368 2,243,368 0.00

HEALTH SERVICESGeneral Administration

MOOE 3,750,000 3,745,205 3,745,205 0.00

SUB-TOTAL 3,750,000 3,745,205 3,745,205 0.00

HOUSING AND COMMUNITYSanitary Services

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MOOEStreet Cleaning 860,000.0 858,711.7 858,711.7 0.00Garbage Collections 4,050,000 4,037,274 4,037,274 0.00Street Lighting 1,500,000 1,500,000 1,500,000 0.00

Social Welfare ServicesMOOEGeneral Administration 1,560,000 1,556,420 1,556,420 0.00Family Planning 100,000.0 100,000.0 100,000.0 0.00Red Cross 5,000.00 5,000.00 5,000.00 0.00OTHERS 2,200,000 2,195,852 2,195,852 0.00

SUB-TOTAL 10,275,00 10,253,25 10,253,25 0.00

ECONOMIC SERVICESMunicipal Economic

General AdministrationMOOE 1,870,000 1,870,000 1,870,000 0.00

Engineering ServicesGeneral Administration

Personal Services 856,567.6 856,567.6 856,567.6 0.00MOOE 192,000.0 192,000.0 192,000.0 0.00

SUB-TOTAL 2,918,567 2,918,567 2,918,567 0.00

OTHER PURPOSESRetirement and Other

Lump-SumPersonal Services 1,000,000 1,000,000.00 530,825.54 469,174

Outlays in Connection withOther Calamities, other

Budgetary ReservesMOOE 4,048,768 4,048,768 4,048,768 0.00

OthersMOOE 2,750,000 2,738,601 2,738,601 0.00

SUB-TOTAL 7,798,768 7,787,369 7,318,195 469,174

Aid to Barangays 35,000.00 35,000.00 35,000.00 0.00

Local Development FundPeace and Order

MOOE 1,060,000 1,050,867 1,050,867 0.00

IT Department

General AdministrationMOOE 150,000.0 138,068.7 138,068.7 0.00

Community DevelopmentGeneral Administration

MOOE 16,195,07 16,195,07 16,195,07 0.00Capital Outlay 0.00 0.00

SUB-TOTAL 17,405,07 17,384,01 17,384,01 0.00

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GRAND TOTAL 87,187,5 87,040,6 86,321,6 718,97

Annex E

AAR Page 10

Schedule of Property, Plant and Equipment


PARTICULARSAcquisition

Cost

Accumulated

DepreciationBook Value

Land P 300,000.00 P 0.00 P 300,000.00


Office Buildings 7,747,527.28 0.00 7,747,527.28


Other Structures 3,012,114.81 0.00 3,012,114.81

Office Equipment 291,919.26 69,990.39 221,928.87

Furniture and Fixtures 3,938,411.38 52,744.69 3,885,666.69

IT Equipment and Software 653,018.80 492,707.48 160,311.32

Const.& Heavy Equipment 3,164,338.50 1,781,455.83 1,382,882.67

Motor Vehicles 711,000.00 581,125.03 129,874.97

Other Transportation Equipment 844,438.36 288,516.46 555,921.90

Other Property, Plant &

Equipment87,000.00 60,900.00 26,100.00

Construction in Progress 600,000.00 0.00 600,000.00

TOTAL PROPERTY, PLANT &

EQUIPMENTP35,269,223.02 P 3,327,439.88 P 31,941,783.14

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Annex F

AAR Page 11

Schedule of PPE without Depreciation in CY 2008


PARTICULARSAcquisition

Cost

Accumulated

DepreciationBook Value


Office Buildings 7,747,527.28 0.00 7,747,527.28


Other Structures 3,012,114.81 0.00 3,012,114.81

Furniture and Fixtures 3,737,943.63 0.00 3,737,943.63

TOTAL P 28,417,040.35 0.00 P 28,417,040.35

01-municipality of bongao08 audit report

Documents