Republic of the Philippines

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

BARANGAY SAN JUAN

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
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 and Appropriations to ensure compliance with
2019, contrary to pertinent provisions of
AOM No. the pertinent provisions of the Manual on the
September the Manual on the Financial Management
2021-001 of Barangays, hence correctness and Financial Management of Barangays,
8, 2021
(2018-2020) validity of transactions charged against its specifically on the preparation and
appropriations cannot be ascertained. submission of the Record of Appropriation
and Obligations to the COA Auditor for
examination/audit.

Local travels of barangay officials We recommend that the official travels of the
amounting to P1,800.00 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
2021-002 claims doubtful.
8, 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.

AOM No. September Disbursements totaling ₱2,101,050.88 We recommend that the concerned barangay
2021-003 8, 2021 from July 1, 2018 to December 31, 2020 officials and personnel submit the required
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
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
Presidential Decree No. 1445 and transactions and adhere strictly to the
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.

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.
September management of collections and period and intact with the AGDB in
2021-004
8, 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.

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.
the provisions of COA Circular No. 2012- 2012-002, specifically on the preparation and
AOM No.
September 002, hindered the timely verification of the submission of the Annual Local Disaster Risk
2021-005
8, 2021 correctness of the utilization of the Reduction and Management Fund Investment
(2018-2020)
DRRMF. Plan and the Monthly Report on Sources and
Utilization of DRRMF. Henceforth, transfer
the balance of the LDRRMF, if any, at year
end to the Special Trust Fund.

AOM No. September The barangay was not able to conduct We recommend that the Punong Barangay
2021-006 8, 2021 physical inventory of its properties and creates an Inventory Committee that will
(2018-2020) 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
pertinent provisions of the Manual on the submit the RIPE in accordance with pertinent
Financial Management of Barangays, thus provisions of the Manual on Financial
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
rendered the existence, completeness, Management of Barangays, Chapter VII while
accuracy and conditions of the properties taking advantage of the COA Circular No.
in the total amount of P6,001,081.96 as of 2020-006 as to the One-Time Cleansing of
December 31, 2020 doubtful and PPE Account Balances of Government
uncertain. Agencies.

The Gender and Development Focal Point We recommend that the Punong Barangay
System was not created and the GAD direct the creation of the Barangay GFPS that
Plan and Budget was not formulated shall take the lead in mainstreaming GAD in
contrary to the provisions of PCW-DILG-
Barangay PPAs. The GFPS shall adhere
DBM-NEDA Joint Memorandum Circular
AOM No. No. 2013-01, hence, mainstreaming in its strictly to the provisions of PCW-DILG-DBM-
September
2021-007 policies, plans and programs may not be NEDA JMC No. 2013-01, in the preparation
8, 2021
(2018-2020) ensured. of the annual GPB to ensure that gender
issues are appropriately identified, that only
PPAs responsive to GAD objectives are
charged to GAD Funds, and the priority
thrusts of the GAD programs are undertaken.

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
2021-008 filled up contrary to the provisions of up the blanks based on the instructions
8, 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.

AOM No. September Payments of goods and services in the We recommend that the Punong Barangay:
2021-009 8, 2021 total amount of ₱15,416.50 were made
(2018-2020) through reimbursement basis to the a.) Direct the submission of justification why
disbursements were paid through
barangay officials and employees, in
reimbursements instead of direct
violation of Sections 10 and 48 of RA No. payment resulting to non-conformity with
9184, thus taxes were not withheld in the appropriate procurement methods;
violation of BIR Regulations and deprived and
the government of income due thereon.
b.) Strictly enforce that all payments must
be made by check directly to the
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
suppliers/dealers/creditors in the
disbursement of government funds,
except for petty disbursements out of
the petty cash fund, and instruct the
Barangay Treasurer to withhold its
corresponding taxes in order to avoid
delinquencies and revenue losses on
the part of the government, in
adherence to the BIR regulations.
The barangay did not submit several We recommend that the Punong Barangay
Disbursement Vouchers and its supporting direct the concerned barangay official to
documents for disbursements totalling to submit immediately to the Office of the
P1,139,694.32 for the period January 1,
Auditor, the unsubmitted DVs together with its
2018 to June 30, 2018 to the Office of the
AOM No. Auditor, within the prescribed period, corresponding supporting documents and the
September
2021-010 contrary to pertinent provisions of COA summary of checks issued for the period
8, 2021
(2018-2020) Circular No. 95-006 dated May 18, 1995, January 1, 2018 to June 30, 2018; and
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 of Barangays, thus, rendered the Auditor, and henceforth, strictly observe the
2021-011
8, 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.

AOM No. September Expenses totaling ₱106,312.51 under the We recommend that the Punong Barangay
2021-012 8, 2021 20% Development Fund were not in with all the officials particularly the Planning
(2018-2020) accordance with DILG-DBM Joint and Development Council observe the
Memorandum Circular No. 2017-1, thus guidelines of the DILG-DBM JMC No. 2017-
 Management Auditor’s
AOM No. AOM Date Finding/Observation Recommendation/s
Comment/s Rejoinder
deprived the constituents of the benefits 1 in formulating PPAs and utilization of the
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 Treasurer did not submit the We recommend that the Barangay Treasurer
Monthly Report of Accountability for submit the RAAF and Cashbook pursuant to
Accountable Forms and Cashbook as the Manual on the Financial Management of
AOM No. provided under the Manual on the Barangays.
September
2021-013
8, 2021 Financial Management of Barangays,
(2018-2020)
hence reconciliation of accountable forms
and collections and remittances, if any
could not be readily established.