Republic of the Philippines

COMMISSSION ON AUDIT
Local Government Sector
Audit Group E – Iloilo Province North
Office of the OIC- Audit Team Leader

BARANGAY DELA PEÑA

Municipality of Barotac Viejo
Summary of Audit Observations and Recommendations
For CY 2018 - 2020

Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
Expenses totaling ₱130,375.00 under the We recommend that the Punong Barangay
20% Development Fund were not in with all the Officials particularly the Planning
accordance with DILG-DBM Joint and Development Council observe the
AOM No.
September Memorandum Circular No. 2017-1, thus guidelines of the DILG-DBM JMC No. 2017-
2021-001
1, 2021 deprived the constituents of the benefits 1 in formulating PPAs and utilization of the
(2018-2020)
had the fund been used for the intended 20% DF in order to achieve the maximum
socio-economic development and benefits for its constituents.
environmental management programs.

The barangay did not prepare and submit We recommend that the Punong Barangay
the Record of Appropriation and direct the Chairman, Committee on
Obligations for Calendar Years 2018, Appropriations to ensure compliance with the
2019 and 2020, contrary to pertinent
AOM No. pertinent provisions of the Manual on the
September provisions of the Manual on the Financial
2021-02 (2018- Management of Barangays, hence Financial Management of Barangays,
1, 2021
2020) correctness and validity of transactions specifically on the preparation and
charged against its appropriations cannot submission of the Record of Appropriation
be ascertained. and Obligations to the COA Auditor for
examination/audit.

AOM No. September The barangay did not submit several We recommend that the Punong Barangay
2021-003 1, 2021 Disbursement Vouchers and its supporting direct the concerned barangay official to
(2018-2020) documents for disbursements totalling to submit immediately to the Office of the
P281.25 for the period January 1, 2018 to
Auditor, the unsubmitted DVs together with its
December 31, 2020 to the Office of the
Auditor, within the prescribed period, corresponding supporting documents and the
contrary to pertinent provisions of COA summary of checks issued for the period
Circular No. 95-006 dated May 18, 1995, January 1, 2018 to December 31, 2020; and
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
hence, propriety and validity of henceforth, to adhere strictly to the pertinent
transactions could not be promptly provisions of COA Circular No. 95-006.
ascertained.

The Monthly Bank Reconciliation We recommend that the Municipal

Statements were not prepared and Accountant and/or the Barangay Bookkeeper
submitted for Calendar Years 2018 to prepare and submit the monthly BRS for
2020, contrary to pertinent provisions of Calendar Years 2018, 2019 and 2020 with
AOM No. the Manual on the Financial Management supporting documents to the Office of the
September
2021-004 of Barangays, thus, rendered the Auditor, and henceforth, strictly observe the
1, 2021
(2018-2020) correctness of the Cash in Bank balance pertinent provisions of the Manual on the
uncertain, and possible items requiring Financial Management of Barangays.
adjustments by the bank or in the books of
the Barangay could not be effected
immediately.

Disbursements totaling ₱578,958.08 from We recommend that the concerned barangay

January 1, 2018 to December 31, 2020 officials and personnel submit the required
were not supported with complete supporting documents and proofs of receipt
documentation contrary to Section 4(6) of to establish validity of claims and propriety of
AOM No.
September Presidential Decree No. 1445 and transactions and adhere strictly to the
2021-005
1, 2021 pertinent provisions of COA Circular No. provisions of Section 4(6) of PD No. 1445
(2018-2020)
2012-001, thus, propriety and validity of and COA Circular No. 2012-001, by ensuring
the claims could not be ascertained. that all disbursements out of barangay funds
are supported with proper/complete
documents.

Purchase Request, Purchase Order and We recommend that the Punong Barangay
Acceptance and Inspection Report Forms instruct the concerned barangay personnel to
AOM No. for CYs 2018-2020 were not completely use the updated forms and to completely fill
September
2021-006 filled up contrary to the provisions of up the blanks based on the instructions
1, 2021
(2018-2020) Manual on the Financial Management of provided in Annexes 23, 24 and 27 of the
Barangays, hence, rendered the audit of Manual on the Financial Management of
the transactions difficult. Barangays.
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
Non-submission of Report on Sources and We recommend that the Punong Barangay
Utilization of Disaster Risk Reduction and and concerned barangay officials to observe
Management Fund (DRRMF) contrary to strictly the provisions of COA Circular No.
2012-002, specifically on the preparation and
AOM No. the provisions of COA Circular No. 2012-
September submission of the Annual Local Disaster Risk
2021-007 002, hindered the timely verification of the
1, 2021 Reduction and Management Fund Investment
(2018-2020) correctness of the utilization of the Plan and the Monthly Report on Sources and
DRRMF. Utilization of DRRMF. Henceforth, transfer
the balance of the LDRRMF, if any, at year
end to the Special Trust Fund.

Local travels of barangay officials We recommend that the official travels of the
amounting to P36,300.00 were not Punong Barangay and other barangay
approved by authorized officials contrary officials be approved by the authorized
to the provisions of Republic Act No. 7160, officials pursuant to the provisions of
Executive Order No. 77 (s. 2019) and Republic Act No. 7160, Executive Order No.
DILG Memorandum Circular No. 2019-82, 77 (s. 2019) and DILG Memorandum Circular
AOM No. thus rendering propriety of the travel No. 2019-82.
September claims doubtful.
2021-008
1, 2021 We also recommend that the Punong
(2018-2020)
Barangay direct the Barangay Treasurer to
ensure that all travel claims are duly
authorized by proper officials and supported
with complete documentation and to refrain
from reimbursing transportation allowances,
without any receipt or Certification.

The Barangay Treasurer does not deposit We recommend that the Punong Barangay
the collections intact and regularly contrary direct the Barangay Treasurer to deposit/
to the policies and procedures in the remit all collections within the reglementary
AOM No. management of collections and period and intact with the AGDB in
September
2021-009
1, 2021 deposits/remittances under the Manual on accordance with the policies and procedures
(2018-2020)
the Financial Management of Barangays, in the management of collections and
thereby exposed government funds to deposits/remittances under the Manual on the
possible loss or misapplication. Financial Management of Barangays.

AOM No. September The late and non- remittance of the We recommend that the Punong Barangay
2021-010 1, 2021 withheld taxes for the period January 1, require the Barangay Treasurer to compute
(2018-2020) 2018 to December 31, 2020 in the total and reconcile all the withheld taxes and
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
amount of P44,996.22 to the BIR, is in remittances for the year 2018-2020; remit
violation of Revenue Regulation 2-98, thus immediately the all withheld taxes in full and
deprived the government of the productive shoulder the penalties and interest in her
use of the late remitted funds. personal capacity; and henceforth, remit the
deductions intact within ten (10) days after
the end of each month.

The barangay was not able to conduct We recommend that the Punong Barangay
physical inventory of its properties and creates an Inventory Committee that will
submit the Report on Inventory of Property conduct physical count of all property, plant
and Equipment to the Auditor for Calendar and equipment owned by the barangay.
Years 2018, 2019 and 2020, contrary to Likewise, the Committee shall prepare and
AOM No. pertinent provisions of the Manual on the submit the RIPE in accordance with pertinent
September
2021-011
1, 2021 Financial Management of Barangays, thus provisions of the Manual on Financial
(2018-2020)
rendered the existence, completeness, Management of Barangays, Chapter VII while
accuracy and conditions of the properties taking advantage of the COA Circular No.
as of December 31, 2020 doubtful and 2020-006 as to the One-Time Cleansing of
uncertain. PPE Account Balances of Government
Agencies.