Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
ANNUAL AUDIT REPORT
on the
MUNICIPALITY OF PAKIL
PROVINCE OF LAGUNA
For the Year Ended December 31, 2018
provisions of the MNGAS-LGUs, Volume I, specifically:
a. Maintain Property Card (PC) and Property Ledger Card (PPELC) for each PPE;
b. Reconcile PC with the PPELC; and
c. Conduct annual physical inventory of PPE and submit the report thereon using the
prescribed RPCPPE form to the Audit Team on or before January 31 of each year
in compliance with Section 124 of the MNGAS-LGUs, Volume I.
2. Land acquired in Calendar Year 2018 and prior years consisting of 52 parcels of land
were not covered with Transfer Certificates of Title in the name of the Municipality
due to lenghty process of land titling, contrary to Section 449 of the Government
Accounting and Auditing Manual (GAAM), Volume I, Section 148 of the Rules and
Regulations on Supply and Property Management (RRSPM) in the Local
Government prescribed under COA Circular No. 92-386 and Section 39(2) of
Presidential Decree (PD) No. 1445, thus, the reliability of the recorded Land account
as of December 31, 2018 totaling P17,920,422.82 is doubtful and the risk of third
party claims, land disputes and unlawful occupants.
We recommended that the Municipal Mayor direct the Municipal Treasurer, General
Services Officer and Municipal Assessor to expedite the processing of TCTs for the
untitled lots owned by Municipal Government of Pakil to protect the interest of the
Municipality and to ascertain the reliability of the recorded Land account.
3. The Municipality’s insurable property with a total net book value of P30,339,730.41
were not insured with the Property Insurance Fund of the General Service Insurance
System (GSIS) due to incomplete inventory listing of insurable property, and
absence of budget for insurance premium, contrary to Republic Act (RA) No. 656 or
the Property Insurance Law and COA Circular No. 92-390, thus the Municipality is
exposed to the risk of not being fully indemnified in cases of damage or loss of
property.
We recommended that the Municipal Mayor:
a. direct the Municipal Budget Officer to include in the annual budget the amount
necessary for the insurance premiums of all insurable property; and
b. instruct the MGSO to expedite the preparation and submission of the list of all
insurable property so that necessary insurance coverage can be applied with the
GIF and ensure that all insurable property are covered by property insurance with
the General Insurance Fund of the GSIS as required under RA No. 656 and COA
Circular No. 92-390 dated November 17, 1992.
4. Purchases of various supplies and materials totalling P2,399,824.99 were directly
charged to expense accounts due to inability of the Chief Accountant and MGSODesignate to maintain Supplies Ledger Cards and Stock Cards, respectively,
contrary to Sections 114 and 121 of the MNGAS for LGUs, Volume I, thus, resulting
in the understatement of the inventory account and overstatement of the
corresponding expense accounts by an amount equivalent to the supplies and
materials still on hand or not consumed as of year-end.
Transmittal Letter dated May 30, 2019 addressed to Honorable VINCENT L. SORIANO
-
The Regional Director
Department of Budget and Management, Region IV-A
-
The Regional Director
Bureau of Local Government Finance, Region IV-A
-
The Regional Director
Commission on Audit, Region IV-A
-
The Secretary
Sangguniang Bayan, Municipality of Victoria, Laguna
-
The Audit Team Leader
Local Government Sector C – Province of Laguna, Audit Team R4A – 03
-
University of the Philippines (UP) Law Center (Electronic Copy)
-
National Library (Electronic Copy)
-
Commission on Audit Central Library (Electronic Copy)
Municipality of Pakil
Province of Laguna
AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION
Audit Observations and Recommendations
For the Calendar Year 2018
As of _____________
Agency Action Plan
Ref.
Audit
Observations
Audit
Recommendations
Action
Plan
Person/Dept.
Responsible
Target
Implementation
Date
From
To
Status of
Implementation
Reason for
Partial/Delay/NonImplementation, if
applicable
Action
Taken/Action
to be Taken
Agency sign-off:
___________________________________
Name and Position of Agency Officer
_____________________
Date
Note: Status of Implementation may either be (a) Fully Implemented (FI), (b) Ongoing (O), (c) Not Implemented (NI), (d) Partially Implemented (PI),
or (e) Delayed (D)
EXECUTIVE SUMMARY
Introduction
In 1602, Pakil was attached to Paete as a “Vista”. Padre Francisco Barajas made efforts
to separate Pakil from the town of Paete and Don Diego Jorge became the first Capitan
of the town on May 12, 1676.
Pakil remained as an independent town during the Spanish regime with the Capitanes at
helm of the local government, and the last of whom Capitan Nicolas Regalado.
With the change of government from Spanish to American and the organization of the
Civil Government in the country in 1901, Bernardo Gonzales was appointed the first
Municipal President until November 25, 1903 by Public Law 1009, PAKIL was fused with
Pangil. On October 1, 1927 by Executive Order No. 77, PAKIL was restored to being a
separate town.
It has a land area of 4,649.77 hectares and a population of 22,386. It is a 5th class
Municipality that has an agricultural economy. Farming and fishing are the principal
industries of the Municipality.
The Organizational Structure of the Municipality as of December 31, 2018 consists of the
following:
a. Key Officials
 Municipal Mayor
 Municipal Vice Mayor
-
Hon. Vincent L. Soriano
Hon. Melody C. Familara
 Members of the Sangguniang Bayan:
 Municipal Accountant
 Municipal Treasurer
 Municipal Budget Officer
-
Hon. Ariel V. Fornoles
Hon. Geraldin V. Dizon
Hon. Joseph P. Monte
Hon. Jeffrey B. Cotoner
Hon. Eugenio A. Pacheco
Hon. Narciso A. Catarino
Hon. Rolando Galing
Hon. Roberto S. Isorena
Hon. Danilo Bacsafra
-
Ms. Elyne Suzan L. Eleda
Ms. Cecilia R. Garcia
Ms. Cecilia SG. Balita
-
Number
47
11
b. No. of Personnel Complement


Permanent
Elective Officials
i


Co-Terminous
Job Order Workers
Total
-
Number
4
93
155
Audit Objectives
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Scope of Audit
Financial and compliance audit was conducted on the accounts and operations of the
Municipal Government of Pakil for CY 2018. The audit was conducted to ascertain the
propriety of financial transactions and compliance with 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 account balances in the financial statements.
Financial Highlights
For Calendar Year (CY) 2018, the Municipal Government of Pakil realized a total
revenue of P77,687,050.45 which is 5.25 per cent higher than last year’s total income of
P73,811,822.61.
The total assets, liabilities, equity, income and expenses for CY 2018 of the Municipal
Government compared with that of the preceding year are as follows:
Assets
Liabilities
Equity
Revenue
Expenses
Personal Services
Maintenance and Other
Operating Expenses
Non-cash Expenses
Financial Expenses
Transfer, Assistance and
Subsidy
Total Expenses
Surplus (Deficit) for the
period
2018
2017
P178,771,743.69 P156,703,697.28
77,904,916.38
73,384,513.60
100,866,827.31
83,319,183.60
Increase/
(Decrease)
P22,068,046.41
4,520,402.70
17,547,643.71
P77,687,050.45
P73,811,822.61
P3,875,227.84
34,114,496.36
30,976,941.19
3,137,555.17
27,575,932.02
4,865,557.81
259,631.43
24,006,125.89
2,568,355.49
286,578.06
3,569,806.13
2,297,202.32
(
26,946.63)
2,023,576.89
68,839,194.51
2,319,482.81
60,157,483.44
295,905.92)
8,681,711.07
P10,015,758.44
P13,654,339.17
P3,638,580.73)
ii
Audit Opinion on the Financial Statements
The Auditor rendered a qualified opinion on the fairness of the presentation of the
financial statements due to the following:
1. The Property, Plant and Equipment (PPE) totaling P93,372,933.89 or 52.23 per cent
of the total assets of the Municipality was doubtful as to its existence, accuracy and
validity due to the absence of Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) at year-end, Property Cards of the GSO and Property Ledger
Cards in the Accounting Office;
2. Land acquired in Calendar Year 2018 and prior years valued at P17,920,422.82 is
doubtful since 52 parcels of land were not covered with Transfer Certificates of Title in
the name of the Municipality; and
3. Purchases of various supplies and materials totalling P2,399,824.99 were directly
charged to expense accounts due to inability of the Chief Accountant and MGSODesignate to maintain Supplies Ledger Cards and Stock Cards, respectively, resulting
in the understatement of the inventory account and overstatement of the
corresponding expense accounts by an amount equivalent to the supplies and
materials still on hand or not consumed as of year-end.
Significant Observations and Recommendations
For the exceptions above cited, we reiterated our recommendation that the Municipal
Mayor:
a. instruct both the MGSO-Designate and Municipal Accountant to strictly comply with
the provisions of the MNGAS-LGUs, Volume I, specifically:
a.1 maintain Property Card (PC) and Property Ledger Card (PPELC) for each PPE;
a.2 reconcile PC with the PPELC; and
a.3 conduct annual physical inventory of PPE and submit the report thereon using
the prescribed RPCPPE form to the Audit Team on or before January 31 of each
year in compliance with Section 124 of the MNGAS-LGUs, Volume I.
b. direct the Municipal Treasurer, General Services Officer and Municipal Assessor to
expedite the processing of TCTs for the untitled lots owned by Municipal Government
of Pakil to protect the interest of the Municipality and to ascertain the reliability of the
recorded Land account.
c. direct the Municipal Accountant to:
c.1 maintain Supplies Ledger Cards (SLC) for each supply carried in stock; and
c.2 recognize inventory account upon receipt of inventory items purchased and adopt
the perpetual inventory method in the recording of Inventory accounts and charge
to expense only those items actually expended as provided under the MNGAS
iii
for LGUs, Volume I, thus, avoid recording an outright expense for the
procurement of goods and supplies.
d. direct the General Services Officer-Designate to submit to the Municipal Accountant
the Summary of Supplies and Materials Issued (SSMI) supported by Requisition and
Issue Slip (RIS) to support issuances of supplies and materials from stock.
Other significant observations and recommendations are the following:
1. The Municipality’s insurable property with a total net book value of P30,339,730.41
were not insured with the Property Insurance Fund of the General Service Insurance
System (GSIS) due to incomplete inventory listing of insurable property, and absence
of budget for insurance premium, contrary to Republic Act (RA) No. 656 or the
Property Insurance Law and COA Circular No. 92-390, thus the Municipality is
exposed to the risk of not being fully indemnified in cases of damage or loss of
property.
We recommended that the Municipal Mayor:
a. direct the Municipal Budget Officer to include in the annual budget the amount
necessary for the insurance premiums of all insurable property; and
b. instruct the MGSO to expedite the preparation and submission of the list of all
insurable property so that necessary insurance coverage can be applied with the
GIF and ensure that all insurable property are covered by property insurance with
the General Insurance Fund of the GSIS as required under RA No. 656 and COA
Circular No. 92-390 dated November 17, 1992.
2. Hauling and disposal of garbage for Calendar Year (CY) 2018 were awarded to the
contractors through Small Value Procurement instead of competitive Public Bidding
and the Disbursement Vouchers for payments of these transactions with a total
amount of P574,510.00 were not supported with complete documents, contrary to
Section 10 of Republic Act (RA) No. 9184, Section 4(6) of Presidential Decree (PD)
No. 1445 and Item 9.1.3.2 of Commission on Audit (COA) Circular No. 2012-001,
thus, the propriety and legality of the claims were doubtful.
We recommended that the Municipal Mayor:
a. instruct the BAC Chairman and all other Officials concerned to explain the reason
why the Municipality still resorted to alternative method of procurement on hauling
of garbage instead of competitive public bidding as required under Section 10 of
RA 9184; and
b. execute a contract of service detailing the terms of reference supported with
complete documents, in compliance with the provisions of Section 4(6) of PD No.
1445 and COA Circular No. 2012-001.
3. The Ten-Year Municipal Solid Waste Management Plan (2015-2025) of the
Municipality of Pakil was not reviewed and updated by the Municipal Solid Waste
Management Board (MSWMB) every two years or as the need arises, contrary to
Section 4 (g), Rule VI of the Implementing Rules and Regulations (IRR) of Republic
iv
Act (RA) No. 9003, thus the risk that efficient and effective solid waste management
may not be met.
We recommended that the Municipal Mayor direct the MSWMB to review and update
the Ten-Year MSWMP every two years or as the need arises to ensure the
sustainability, viability, effectiveness of the solid waste management strategy of the
Municipality, thus, meet the objectives of the Plan.
4. Materials Recovery Facilities (MRFs) were not established in the barangays of the
Municipality of Pakil as required under Section 1, Rule XI of the Implementing Rules
and Regulations (IRR) of Republic Act (RA) No. 9003 and Department of the Interior
and Local Government (DILG) Memorandum Circular (MC) No. 2009-168 due to non
availability of spaces suitable for the establishment of MRF, thus the full
implementation of waste segregation at source was not fully attained.
We recommended that the Municipal Mayor:
a. instruct the Barangay Officials to:
a.1 look for conducive locations for the MRFs so that all barangays have MRFs, in
compliance with Section 1, Rule XI of the IRR of RA No. 9003 and DILG MC
No. 2009-168; and
a.2 include a composting operation in the MRFs to be established and ensure that
these are fully operating and functioning, in compliance with Section 1, Rule XI
of the IRR of RA No. 9003.
b. direct the Municipal Solid Waste Management Board to:
b.1 monitor, evaluate and inspect the existing MRS of the Municipality in order to
strengthen its implementation; and
b.2 see to it that all Barangays have already established its own MRFs as required
under Section 4(b) and (c), Rule VI of the IRR of RA No. 9003.
5. Out of the 31 programs, projects and activities (PPAs) totaling P13,606,573.80 under
the 20 per cent Development Fund (DF), only 17 PPAs or 55 per cent amounting to
P6,512,407.98 were implemented due to reprogramming, thus the desired optimal
utilization of the fund to attain the desirable socio-economic development and
environmental outcome was not met, contrary to Section 5.0 of the Department of the
Interior and Local Government (DILG) and Department of Budget and Management
(DBM) Joint Memorandum Circular (JMC) No. 2017-1
We recommended that the Municipal Mayor:
a. instruct the Municipal Planning and Development Coordinator (MPDC) and the
Municipal Engineer to determine and address the cause/s for the delay and/or nonimplementation of the 14 PPAs; and
v
b. employ regular monitoring mechanism in assessing the rate of progress of project
implementation thru closer coordination with the Municipal Planning and
Development Coordinator and Municipal Engineer to ensure that programmed
projects are implemented and completed on time.
6. The required Monthly Report on Utilization of Disaster Risk Reduction and
Management Fund (DRRMF) was not submitted to the Office of the Auditor, contrary
to Section 5.1.5 of COA Circular No. 2012-002 dated September 12-002, thus
hampering the timely review and evaluation of the utilization of the fund.
We reiterated our recommendation that the Municipal Mayor require the Local
Disaster Risk Reduction and Management Officer to prepare and submit to the Office
of the Auditor the Report on Utilization of Disaster Risk Reduction and Management
Fund on or before 15th day after the end of each month using the format prescribed
under Annex B of COA Circular No. 2012-02.
7. The unutilized amount of P956,092.06 of the Local Disaster Risk Reduction
Management Fund (LDRRMF) was not reverted back to the General Fund after five
years due to lack of monitoring of LDRRMF balances, contrary to Section 21 of
Republic Act (RA) No. 10121 and COA Circular No. 2012-002.
We recommended that the Municipal Mayor instruct the Municipal Accountant to
revert back the unutilized LDRRM Fund of CYs 2011 to 2013 to the General Fund
and to make the funds available for other social services.
8. The Annual Gender and Development Plan and Budget (GPB) and Gender and
Development Accomplishment Report (GAR) of the Municipality were not submitted
to the oversight government bodies, contrary to Joint Memorandum Circular (JMC)
No. 2013-01 of the Philippine Commission on Women, the Department of the Interior
and Local Government, the Department of Budget and Management and the National
Economic and Development Authority (PCW-DILG-DBM-NEDA), thus, affecting the
review and evaluation as to whether the Municipality has developed GAD Plan and
implemented programs and activities that addressed gender issues as required under
Republic Act (RA) No. 9710.
We recommended that the Municipal Mayor require the GAD Focal Person and all
other concerned Officials to prepare the GAD Plan and Budget and GAD
Accomplishment Report using the format prescribed in Annexes D and E of the JMC
No. 2013-01 and submit the reports to all government agencies concerned for review
and evaluation.
The above observations and recommendations were discussed with the Municipal
officials and employees concerned in an exit conference held on May 28, 2019.
Management’s views and reactions were incorporated in the report, where appropriate.
Unsettled Suspensions, Disallowances and Charges
The Statement of Audit Suspensions, Disallowances and Charges (SASDC) as of
December 31, 2018 showed a total of zero suspensions, charges and disallowances of
P155,914.61.
vi
Notice
Suspension
Disallowance
Total
Less prior year
adjustment
(Note 20)
Adjusted Total
Beginning Balance
(January 1, 2018)
P
0.00
2,009,197.99
2,009,197.99
Issuance
P0.00
0.00
0.00
Settlement
P
0.00
1,853,283.38
1,853,283.38
Ending Balance
(December 31,
2018)
P
0.00
155,914.61
155,914.61
0.00
P2,009,197.99
0.00
P0.00
347,316.58
P1,505,966.80
0.00
P155,914.61
Status of Implementation of Prior Year’s Audit Recommendations
Out of the 13 audit recommendations embodied in the CY 2017 Annual Audit Report,
three were fully implemented, two were partially implemented and eight were not
implemented by the Municipal Government of Pakil.
vii
TABLE OF CONTENTS
Part
I
Subject
Page No.
AUDITED FINANCIAL STATEMENTS
Independent Auditor’s Report
Statement of Management’s Responsibility for Financial
Statements
Statement of Financial Position
Statement of Financial Performance
Statement of Cash Flows
Statement of Changes in Net Assets/Equity
Statement of Comparison of Budget and Actual Amounts
(SCBAA) - Consolidated
Notes to Financial Statements
II
1
3
4
5
6
7
8
10
AUDIT OBSERVATIONS AND RECOMMENDATIONS
Financial and Compliance Audit
Local Disaster Risk Reduction and Management (LDRRM)
Gender and Development (GAD)
Compliance with Tax Laws
Compliance with GSIS Premium Remittances
Unsettled Suspensions, Disallowances and Charges
Compliance with the Government Service Insurance System
(GSIS) Premium Remittances
Official Development Assistance (ODA) Funded Projects
III
STATUS OF IMPLEMENTATION OF PRIOR
AUDIT RECOMMENDATIONS
IV
APPENDICES
YEARS’
22
37
39
41
41
41
41
41
42
A
Statement of Financial Position (By Fund) as of December 31,
2018
46
B
Statements of Financial Performance (By Fund) for the Year
Ended December 31, 2018
48
C
Statement of Cash Flow (By Fund) for the Year Ended
December 31, 2018
50
D
Statement of Net Assets/Equity for the Period Ended
December 31, 2018
51
E
Statement of Comparison of Budget and Actual Amounts
(SCBAA) - General Fund
52
F
Statement of Comparison of Budget and Actual Amounts
(SCBAA) - Special Education Fund
54
Certification of Land Ownership
56
G
H
I
List of Disbursement Vouchers Hauling of Garbage and
Tipping Fee/Final Disposal
58
20 Per Cent Development Fund
Plans/Programs and Activities
59
PART I - AUDITED FINANCIAL STATEMENTS
Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City
INDEPENDENT AUDITOR’S REPORT
Honorable VINCENT L. SORIANO
Municipal Mayor
Municipality of Pakil
Province of Laguna
Qualified Opinion
We have audited the financial statements of the Municipal Government of Pakil, which
comprise the statement of financial position as at December 31, 2018, and the statement
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 year then
ended, and notes to financial statements, including a summary of significant accounting
policies.
In our opinion, except for the effects of the matter described in the Basis for Qualified
Opinion section of our report, the accompanying financial statements present fairly, in all
material respects, the financial position of the Municipal Government of Pakil as at
December 31, 2018 and its financial performance, its cash flows, and its comparison of
budget and actual amounts for the year then ended in accordance with the Philippine
Public Sector Accounting Standards (PPSASs).
Bases for Qualified Opinion
1. The Property, Plant and Equipment (PPE) totaling P93,372,933.89 or 52.23 per cent
of the total assets of the Municipality was doubtful as to its existence, accuracy and
validity due to the absence of Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) at year-end, Property Cards of the GSO and Property Ledger
Cards in the Accounting Office;
2. Land acquired in Calendar Year 2018 and prior years valued at P17,920,422.82 is
doubtful since 52 parcels of land were not covered with Transfer Certificates of Title in
the name of the Municipality; and
3. Purchases of various supplies and materials totalling P2,399,824.99 were directly
charged to expense accounts due to inability of the Chief Accountant and MGSODesignate to maintain Supplies Ledger Cards and Stock Cards, respectively, resulting
in the understatement of the inventory account and overstatement of the
corresponding expense accounts by an amount equivalent to the supplies and
materials still on hand or not consumed as of year-end.
Municipality of Pakil
Statement of Financial Position
As of December 31, 2018
(With Comparative Figures for CY 2017)
Note
ASSETS
Current Assets
Cash and Cash Equivalents
Receivables
Inventories
Prepayments and Deferred Charges
Total Current Assets
Non-Current Assets
Property, Plant and Equipment
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Financial Liabilities
Inter-Agency Payables
Intra-Agency Payables
Trust Liabilities
Deferred Credits/ Unearned Income
Other Payables
Total Current Liabilities
Total Liabilities
NET ASSETS/ EQUITY
Government Equity
Total Liabilities and Net Assets/ Equity
2018
2017
4
5
6
7
P41,752,236.34
43,542,698.71
99,792.00
4,082.75
85,398,809.80
P48,196,949.30
38,828,866.86
76,000.00
0.00
87,101,816.16
8
93,372,933.89
93,372,933.89
P178,771,743.69
69,626,881.12
69,626,881.12
P156,728,697.28
4,674,191.91
21,749,773.48
3,019,470.89
7,740,263.59
40,634,884.38
86,332.13
77,904,916.38
77,904,916.38
5,157,082.85
21,606,039.89
1,360,145.08
6,352,136.68
38,713,866.86
220,242.32
73,409,513.68
73,409,513.68
100,866,827.31
P178,771,743.69
83,319,183.60
P156,728,697.28
10
(See accompanying Notes to Financial Statements)
4
Municipality of Pakil
Statement of Financial Performance
For the Year Ended December 31, 2018
(With Comparative Figures for CY 2017)
Revenue
Tax Revenue
Share from Internal Revenue Collection
Service and Business Income
Shares, Grants and Donations
Miscellaneous Income
Total Revenue
Less: Current Operating Expenses
Personnel Services
Maintenance and Other Operating
Expenses
Financial Expenses
Non-Cash Expenses
Note
2018
11
12
13
15
P 3,450,844.49
68,032,869.00
5,791,372.01
259,316.44
152,648.51
77,687,050.45
P 4,663,719.46
63,417,795.00
4,770,361.63
368,840.22
591,106.30
73,811,822.61
16
34,114,496.36
30,976,941.19
17
27,575,932.02
259,631.43
4,865,557.81
24,006,125.89
286,578.06
2,568,355.49
66,815,617.62
57,838,000.63
10,871,432.83
15,973,821.98
1,167,902.50
(2,023,576.89)
0.00
(2,319,482.81)
P10,015,758.44
P13,654,339.17
18
Current Operating Expenses
Surplus (Deficit) from Current Operation
Add (Deduct)
Transfers, Assistance and Subsidy
from
Transfers, Assistance and Subsidy to
Surplus/(Deficit) for the Period
19
2017
(See accompanying Notes to Financial Statements)
5
Municipality of Pakil
Cash Flow Statement
For the Year Ended December 31, 2018
(With Comparative Figures for CY 2017)
2018
Cash Flows From Operating Activities
Cash Inflows
Share from Internal Revenue Collections
Collection from Taxpayers
Receipts from Sale of Goods and Services
Interest Income
Other Receipts
Total Cash Inflows
Cash Outflows
Payments to Suppliers/Creditors
Payments to Employees
Payment of Interest on Loan
Total Cash Outflows
Net Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Inflows
Cash Outflows
Purchase Property, Plant and Equipment
Total Cash Outflows
Net Cash Flows from Investing Activities
Cash Flows from Financing Activities
Cash Inflows
Cash Outflows
Payment of Long -Term Liabilities
Payment of Loan Amortization
Total Cash Outflows
Net Cash Flows from Financing Activities
Total Cash Provided by (Used In) Operating,
Investing and Financing Activities
Add: Cash at the Beginning of the Year
Cash Balance at the End of the Year
2017
P68,032,869.00
3,450,844.49
5,791,372.01
41,449.44
40,253,598.43
117,570,133.37
P63,417,795.00
6,259,436.69
5,760,796.92
57,982.05
65,134,204.74
140,630,215.40
67,375,375.14
34,114,496.36
0.00
101,489,871.50
16,080,261.87
0.00
96,102,176.23
19,181,815.11
115,283,991.34
25,346,224.06
0.00
0.00
22,308,012.43
22,308,012.43
(22,308,012.43)
16,605,395.50
16,605,395.50
(16,605,395.50)
0.00
0.00
0.00
216,962.40
216,962.40
(216,962.40)
283,078.06
193,095.73
476,173.79
(476,173.79)
(6,444,712.96)
48,196,949.30
P41,752,236.34
8,264,654.77
39,932,294.53
P48,196,949.30
6
Municipality of Pakil
Statement of Changes in Net Assets/Equity
For the Year Ended December 31, 2018
(With Comparative Figures for CY 2017)
2018
Balance at January 1
Add (Deduct)
Changes in Accounting Policy
Prior Period Errors
Restated Balance
Add (Deduct): Changes in net
assets/equity during the year
Adjustment of net revenue recognized
directly in net assets/equity
Surplus for the period
Total recognized revenue and expense
for the period
Balance at December 31
2017
P83,319,183.60 P50,476,329.86
0.00
508,830.70
83,828,014.30
18,956,364.97
232,149.60
69,664,844.43
7,023,054.57
10,015,758.44
0.00
13,654,339.17
0017,038,813.01
13,654,339.17
P100,866,827.31 P83,319,183.60
7
Particulars
Revenue
A. Local Sources
1. Tax Revenue
a. Tax Revenue - Property
b. Tax Revenue - Goods and Services
c. Other Local Taxes
Total Tax Revenue
2. Non-Tax Revenue
a. Service Income
b. Business Income
c. Other Income and Receipts
Total Non-Tax Revenue
B. External Sources
1. Share from the National Internal Revenue Taxes (IRA)
2. Share from GOCCs
3. Other Shares from National Tax Collections
a. Share from Ecozone
b. Share from EVAT
c. Share from National Wealth
d. Share from Tobacco Excise Tax
4. Other Receipts
a. Grants and Donations
b. Other Subsidy Income
5. Inter-local Transfer
6. Capital /Investment Receipts
a. Sale of Capital Assets
b. Sale of Investments
c. Proceeds from Collections of Loan Receivables
C. Receipts from Borrowings
Total Revenue and Receipts
Expenditures
Current Appropriations
General Public Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Education
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Health, Nutrition and Population Control
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Format per COA Cir. 2016-004 dated
Municipal
Sept. 30,
Government
2016
of Pakil
Statement of Comparison of Budget and Actual Amounts
ALL FUNDS
For the Year Ended December 31, 2018
(In Philippine Peso)
Coordinate with GAS for any item or formula for correction.
OVER-ALL TOTAL
Budgeted Amounts
Difference
Original
Final
Original and Final Budget
2018
2017
2018
2017
2018
2017
1,287,000.00
1,511,000.00
390,000.00
3,188,000.00
2,257,510.94
1,572,000.00
465,000.00
4,294,510.94
2,441,987.81
1,511,000.00
390,000.00
4,342,987.81
2,257,510.94
1,572,000.00
465,000.00
4,294,510.94
463,500.00
2,253,500.00
3,099,000.00
5,816,000.00
425,000.00
4,137,500.00
505,000.00
5,067,500.00
463,500.00
2,253,500.00
595,000.00
3,312,000.00
425,000.00
4,137,500.00
505,000.00
5,067,500.00
68,032,869.00
77,036,869.00
63,417,795.00
72,779,805.94
68,032,869.00
75,687,856.81
28,201,326.31
12,412,193.70
1,920,000.00
26,759,859.94
11,903,760.94
4,489,507.55
26,644,059.19
16,256,741.57
52,530,768.43
3,104,999.58
1,761,000.00
-
3,133,791.68
1,761,000.00
-
2,983,221.69
1,761,000.00
-
2018
Difference
Final Budget and Actual
2018
2017
2017
-
1,508,243.70
1,463,419.65
479,181.14
3,450,844.49
2,132,965.51
2,068,757.45
461,996.50
4,663,719.46
933,744.11
47,580.35
(89,181.14)
892,143.32
124,545.43
(496,757.45)
3,003.50
(369,208.52)
2,504,000.00
2,504,000.00
-
2,943,480.68
2,847,891.33
411,964.95
6,203,336.96
2,239,153.41
2,531,208.22
959,946.52
5,730,308.15
(2,479,980.68)
(594,391.33)
183,035.05
(2,891,336.96)
(1,814,153.41)
1,606,291.78
(454,946.52)
(662,808.15)
63,417,795.00
72,779,805.94
2,504,000.00
-
68,032,869.00
77,687,050.45
63,417,795.00
73,811,822.61
(1,999,193.64)
(1,032,016.67)
26,759,859.94
11,903,760.94
4,489,507.55
1,557,267.12
(3,844,547.87)
(50,610,768.43)
-
26,162,086.80
14,645,716.46
2,473,015.29
25,384,894.35
11,186,570.41
1,063,645.92
481,972.39
1,611,025.11
50,057,753.14
1,374,965.59
717,190.53
3,425,861.63
3,133,791.68
1,761,000.00
-
`
Actual
Amounts
-
121,777.89
-
-
2,963,753.08
1,655,926.44
-
2,733,198.16
949,939.37
-
19,468.61
105,073.56
-
400,593.52
811,060.63
-
8
Budgeted Amounts
Particulars
Original
2018
Maintenance and Other Operating Expenses
Capital Outlay
Housing and Community Development
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Social Services and Social Welfare
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Economic Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Other Purposes:
Debt Service
Financial Expense
Amortization
LDRRMF
Maintenance and Other Operating Expenses
Capital Outlay
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay
Share from National Wealth
Maintenance and Other Operating Expenses
Capital Outlay
Allocation for Senior Citizens and PWD
Maintenance and Other Operating Expenses
Capital Outlay
Others
Special Purpose Appropriations
Maintenance and Other Operating Expenses
Capital Outlay
Total Current Appropriations
Continuing Appropriations
General Public Services
Capital Outlay
Education
Capital Outlay
Health, Nutrition and Population Control
Capital Outlay
Labor and Employment
Capital Outlay
Housing and Community Development
Capital Outlay
Social Services and Social Welfare
Capital Outlay
Economic Services
Capital Outlay
Other Purposes:
Capital Outlay
Total Continuing Appropriations
Total Appropriations
Surplus (Deficit) for the period
Final
2017
2018
2017
-
-
-
-
-
-
-
-
OVER-ALL TOTAL
Difference
Original and Final Budget
2018
2017
-
-
Actual
Amounts
2018
2017
-
-
-
-
Difference
Final Budget and Actual
2018
2017
-
1,239,866.51
571,000.00
-
1,139,777.20
571,000.00
-
1,484,612.78
584,000.00
-
1,139,777.20
571,000.00
-
(244,746.27)
(13,000.00)
-
-
1,473,365.48
498,958.44
-
1,189,977.52
547,502.71
-
11,247.30
85,041.56
-
3,757,515.99
961,887.47
0
1,753,731.84
416,268.16
-
3,823,404.37
4,768,530.92
-
1,753,731.84
416,268.16
-
(65,888.38)
(3,806,643.45)
-
-
3,616,587.27
86,637.24
-
1,668,871.36
251,521.40
-
206,817.10
4,681,893.68
-
-
-
3,726,643.45
-
3,562,614.75
-
13,606,573.80
-
12,683,559.00
-
-
-
132,000.00
-
550,000.00
-
6,200,000.00
77,597,024.81
4,029,600.00
25,334.88
72,781,822.94
13,606,573.80
5,299,997.00
129,744,927.75
3,562,614.75
12,683,559.00
550,000.00
4,029,600.00
25,334.88
72,781,822.94
3,726,643.45
-
-
-
-
-
-
-
-
-
-
-
-
132,000.00
900,003.00
(52,145,884.94)
2,017.00
8,981,573.87
-
5,113,671.64
67,671,292.01
2,330,966.95
7,730,240.29
549,580.00
4,570,575.00
60,159,500.44
4,624,999.93
-
(50,200.32)
23,497.29
84,860.48
164,746.76
-
1,231,647.80
4,953,318.71
-
-
-
-
420.00
-
186,325.36
62,073,635.74
(540,975.00)
25,334.88
12,624,339.50
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
77,597,024.81 72,781,822.94 129,744,927.75 72,781,822.94
(560,155.81)
(2,017.00) (54,057,070.94)
(2,017.00)
(52,145,884.94)
54,649,884.94
2,017.00
(2,017.00)
67,671,292.01
10,015,758.44
60,159,500.44
13,652,322.17
62,073,635.74
12,624,339.50
(64,072,829.38) (13,656,356.17)
9
Notes to Condensed Financial Statements
(All amounts in Philippine Peso unless otherwise stated)
Note 1 - Profile
In 1602, Pakil was attached to Paete as a “Vista”. Padre Francisco Barajas made efforts
to separate Pakil from the town of Paete and Don Diego Jorge became the first Capitan
of the town on May 12, 1676.
Pakil remained as an independent town during the Spanish regime with the Capitanes at
helm of the local government, and the last of whom Capitan Nicolas Regalado.
With the change of government from Spanish to American and the organization of the
Civil Government in the country in 1901, Bernardo Gonzales was appointed the first
Municipal President until November 25, 1903 by Public Law 1009, PAKIL was fused with
Pangil. On October 1, 1927 by Executive Order No. 77, PAKIL was restored to being a
separate town.
It has a land area of 4,649.77 hectares and a population of 22,386. It is a 5th class
Municipality that has an agricultural economy. Farming and fishing are the principal
industries of the Municipality.
Note 2 - Statement of Compliance and Basis of Preparations of Financial
Statement
The consolidated financial statements of the Municipality of Pakil have been prepared in
accordance with and comply with the Philippine Public Sector Accounting Standards
(PPSAS). The consolidated financial statements are presented in pesos, which is the
functional and reporting currency of the Municipal Government of Pakil. The accounting
policies have been applied starting from the year 2015.
Note 3 - Summary of Significant Accounting Policies
3.1 Basis of Accounting
The consolidated financial statements are prepared on an accrual basis in accordance
with the Philippine Public Sector Accounting Standards (PPSAS).
3.2 Consolidation
General, Special Education Fund (SEF) and Trust Funds are those maintained by the
Municipality. The statements are classified to intergroup transaction balances.
3.3 Revenue Recognition
The Municipality recognizes revenues from taxes and fines when the event occurs and
the asset recognition criteria are met and when services were already rendered.
10
3.4 Property, Plant and Equipment
All property, plant and equipment are stated at cost less accumulated depreciation.
Depreciation on assets is charged on a straight line basis over the useful life of the
asset.
3.5 Financial Instruments
Financial Assets
Cash and cash equivalent comprise of cash on hand and in bank.
Inventory is measured at cost at initial recognition. The cost of inventory is its fair value
at the time of acquisition.
Financial Liabilities
The financial liabilities include non-interest bearing and interest bearing loans.
3.6 Budget Information
The actual budget is prepared on the modified cash basis, that is, all planned cost and
income are presented in a single statement to determine the needs of the Municipality.
As a result of the adoption of the modified cash basis for budgeting purposes, there are
basis, timing, or entity differences that would require reconciliation between the actual
comparable amount and the amounts presented as a separate additional financial
statement in the statement of comparison of budget and actual amounts.
Note 4 - Cash
The details of this account are as follows:
Accounts
Cash – Local Treasury
Cash in Bank-Local Currency, Current Account
2018
P 1,896,630.94
39,855,605.40
P41,752,236.34
2017
P18,376,967.67
29,819,981.63
P48,196,949.30
Cash – Local Treasury represents cash collections deposited on January 16, 2019 with
Land Bank of the Philippines, Siniloan Branch, Laguna.
Cash in Bank – Local Currency, Current Account includes trust fund received from
national government agencies, MDRRM Fund, 20 per cent Local Development Fund and
other local funds.
Note 5 - Receivables
The details of this account are as follows:
Loans and Receivable Accounts
Real Property Tax Receivable
Special Education Tax Receivable
2018
P20,317,442.19
20,317,442.19
2017
P19,356,933.43
19,356,933.43
11
Receivable - Others
Sub-Total
Intra-Agency Receivables
Due from Other Funds
Total Receivables
2018
7,222.33
40,642,106.71
2017
0.00
38,713,866.86
2,900,592.00
P43,542,698.71
115,000.00
P38,828,866.86
Note 6 - Inventories
The details of this account are as follows:
2018
P
0.00
99,792.00
P99,792.00
Accountable Forms, Plates and Stickers
Food Supplies Inventory
Totals
2017
P31,000.00
45,000.00
P76,000.00
Note 7 - Prepayments
This account refers to the unexpired balance of the operating license amounting to
P4,082.75 for the MS Office valid for one year from the date of purchase on July 11,
2018 originally procured at P6,999.00.
Note 8 – Property, Plant and Equipment
The details of this account are presented below:
2017
Land
Road Networks
Flood Control Systems
Water Supply Systems
Power Supply Systems
Office Buildings
School Buildings
Hospitals and Health Centers
Other Structures
Office Equipment
Information and Communication
Technology Equipment
Agricultural, Fishery and Forestry
Equipment
Communication Equipment
Construction and Heavy
Equipment
Disaster Response and Rescue
Equipment
Medical Equipment
Sports Equipment
P 8,798,935.35
10,456,914.66
1,393,643.63
9,050,737.59
1,967,688.00
3,591,399.41
307,380.13
79,241.19
19,395,748.27
2,169,091.48
Additions/
(Reductions)
2018
P9,121,487.47 P17,920,422.82
990,730.00
11,447,644.66
0.00
1,393,643.63
2,739,787.91
11,790,525.50
0.00
1,967,688.00
839,867.46
4,431,266.87
0.00
307,380.13
0.00
79,241.19
9,468,033.56
28,863,781.83
222,945.00
2,392,036.48
3,331,036.83
244,445.60
3,575,482.43
1,535,500.00
686,748.25
0.00
0.00
1,535,500.00
686,748.25
1,340,000.00
0.00
1,340,000.00
1,300,680.00
553,960.00
294,921.00
1,167,790.00
0.00
0.00
2,468,470.00
553,960.00
294,921.00
12
Other Machineries and
Equipment
Motor Vehicles
Watercrafts
Other Transportation Equipment
Furniture and Fixtures
Books
Construction in Progress –
Buildings and Other Structures
Work/Zoo Animals
Other Property, Plant and
Equipment
Gross Amount
Less: Accumulated Depreciation
Net Book Value
5,703,450.00
484,600.00
2,640,000.00
1,405,760.48
15,550.00
Additions/
(Reductions)
11,500.00
(14,159.00)
3,574,500.00
0.00
0.00
438,850.00
0.00
1,957,620.15
9,277,950.00
484,600.00
2,640,000.00
1,844,610.48
15,550.00
719,456.40
62,000.00
(719,456.40)
0.00
0.00
62,000.00
3,999.00
511,130.00
515,129.00
2017
1,960,279.15
2018
79,248,720.82
28,597,451.60 107,846,172.42
(9,621,839.70)
(4,851,398.83) (14,473,238.53)
P69,626,881.12 P23,746,052.77 P93,372,933.89
Additions were brought about by the purchase and construction of the property and
equipment.
Note 9 - Biological Assets
This account refers to the buffalos and carabaos amounting to P62,000.00.
Note 10 - Liabilities
The details of this account are as follows:
Accounts Payable
Loans Payable - Domestic
Totals
2018
P2,677,884.98
1,996,306.93
P4,674,191.91
2017
P2,943,813.52
2,213,269.33
P5,157,082.85
Accounts payables are short -term obligations resulting from the regular operation of the
Municipality.
Loans payable – Domestic refers to the remaining balance of the loan from Municipal
Development Fund Office (MDFO) for Laguna de Bay Institutional Strengthening and
Community Participation (LISCOP) projects on Eco Tourism and Material Recovery
System (MRS).
Inter-Agency Payables
The details of this account are as follows:
Due to NGAs
Due to LGUs
Due to BIR
2018
P15,582,556.40
5,101,793.79
815,569.81
2017
P17,972,382.15
2,077,176.74
1,364,418.00
13
Due to GSIS
Due to GOCCs
Total
2018
192,063.00
57,790.48
P21,749,773.48
2017
192,063.00
0.00
P21,606,039.89
Due to BIR refers to the taxes withheld from the compensation of elective and regular
employees and remitted on January 15, 2019 via Electronic Filing and Payment System
(eFPS).
Due to GSIS refers to previous unreconciled GSIS contributions until CY 1997.
Intra-Agency Payables
Intra-Agency payables refers to the amount Due to Other Funds totaling P3,019,470.89
in CY 2018 and P1,360,145.08 in CY 2017.
Trust Liabilities
The details of this account are as follows:
MDRRM Fund
Guaranty Deposit Payable
Bail Bonds Payable
Totals
2018
2017
P6,030,443.00 P5,456,874.83
1,688,460.59
881,001.85
21,360.00
14,260.00
P7,740,263.59 P6,352,136.68
Other Payables
This account refers to the sale of the bidding documents from prospective bidders and
advance payments of real property taxes from various taxpayers, socialized housing and
tenancy share in Botika ng Barangay, amounting to P86,332.13 in CY 2018 and
P220,242.32 in CY 2017.
Deferred Credits/ Unearned Income
The details of this account are as follows:
Real Property Tax – Basic
Special Education Tax
Totals
2018
P20,317,442.19
20,317,442.19
P40,634,884.38
2017
P19,356,933.43
9,356,933.43
P38,713,866.86
The above amounts represent the estimated uncollected real property tax from CYs
2002 to current period.
14
Note 11 - Tax Revenues
The total tax revenues collected in CYs 2018 and 2017 amounted to P3,450,844.49 and
P4,663,719.46, respectively. Transactions involved are as follows:
Community Tax
Real Property Tax, Net
Special Education Tax, Net
Business Tax
Amusement Tax
Franchise Tax
Fines and Penalties – Tax on Goods and
Services
Totals
2018
P317,650.26
821,776.00
1,027,219.94
1,194,475.76
45,698.65
21,896.07
2017
P 279,893.55
1,342,344.00
1,677,930.00
1,216,463.85
26,839.00
64,843.40
22,127.81
55,405.66
P3,450,844.49
P4,663,719.46
Note 12 - Share from Internal Revenue Allotment
The total amount received for the share in the internal revenue collection in CYs 2018
and 2017 amounted to P68,032,869.00 and P63,417,795.00, respectively.
Note 13 - Service and Business Income
The total service and business income collected in CYs 2018 and 2017 amounted to
P5,791,372.01 and P4,770,361.63, respectively. Transactions involved are as follows:
Service Income
Permit Fees
Registration Fees
Clearance and Certificate Fees
Inspection Fees
Fishery Rental Fees
Fees for Sealing and Licensing of Weights
and Measures
Other Service Income
Sub-Totals
Business Income
Receipt from Market Operations
Receipt from Cemetery Operations
Garbage Fees
Hospital Fees
Interest Income
Other Business Income
Sub-Totals
Totals
2018
P1,393,495.68
891,473.00
231,796.00
156,741.00
400.00
2017
P1,092,777.41
768,220.00
161,883.00
122,968.00
800.00
3,695.00
265,880.00
2,943,480.68
4,855.00
87,650.00
2,239,153.41
0.00
262,511.89
32,430.00
132,820.00
41,449.44
2,378,680.00
2,847,891.33
P5,791,372.01
6,040.00
232,716.67
30,545.00
28,585.00
86,881.55
2,146,440.00
2,531,208.22
P4,770,361.63
Note 14 - Transfers, Assistance and Subsidy
The amount of transfers received from other fund totaled P1,167,902.50.
15
Note 15 - Other Income
The details of this account are as follows:
Share from PCSO
Miscellaneous Income
Total
2018
P259,316.44
152,648.51
P411,964.95
2017
P368,840.22
591,106.30
P959,946.52
Note 16 - Personnel Services
The total personnel services paid in CYs 2018 and 2017 amounted to P34,114,496.36
and P30,976,941.19, respectively. Expenses incurred are as follows:
Personnel Services
Salaries and Wages – Regular
Salaries and Wages- Casual/Contractual
Other Compensation
Personal Economic Relief Allowances
Representation Allowance
Transportation Allowance
Clothing/Uniform Allowance
Subsistence Allowance
Laundry Allowance
Hazard Pay
Longevity Pay
Overtime and Night Pay
Year-End Bonus
Cash Gift
Other Bonuses and Allowances
Personnel Benefit Contribution
Retirement and Life Insurance Premiums
Pag-IBIG Contributions
PhilHealth Contributions
Employees Compensation Insurance
Premiums
Other Personnel Benefits
Terminal Leave Benefits
Other Personnel Benefits
Totals
2018
2017
P17,512,017.91
2,342,496.58
P16,111,498.71
1,860,815.10
2,170,866.67
1,512,000.00
1,419,600.00
528,000.00
66,539.37
32,549.69
30,500.00
70,000.00
154,362.29
1,762,711.80
456,000.00
1,985,575.78
1,469,642.04
1,469,642.05
415,000.00
65,976.57
10,050.00
33,500.00
65,000.00
163,140.58
1,491,995.00
410,000.00
2,376,564.61
363,846.60
265,651.34
2,168,787.53
329,595.56
200,412.50
93,151.86
86,233.70
959,424.64
1,998,213.00
P34,114,496.36
736,005.49
1,904,070.58
P30,976,941.19
Note 17 - Maintenance and Other Operating Expenses
The total maintenance and other operating expenses paid in CYs 2018 and 2017
amounted to P29,859,140.34 and P26,612,186.76, respectively, as follows:
Traveling Expenses
Traveling Expenses - Local
Training and Scholarship Expenses
2018
2017
P 656,439.36
P 416,525.00
16
Training Expenses
Scholarship Grants/Expenses
Supplies and Material Expenses
Office Supplies Expense
Accountable Forms Expense
Food Supplies Expense
Drugs and Medicines Expenses
Medical, Dental and Laboratory Supplies
Expenses
Fuel, Oil and Lubricant Expenses
Animal and Zoological Supplies
Welfare Goods Supplies
Other Supplies and Material Expenses
Utility Expenses
Water Expenses
Electricity Expenses
Communication Expenses
Postage and Courier Services
Telephone Expenses
Cable, Satellite, Telegraph and
Radio Expenses
Professional Services
Other Professional Services
General Services
Janitorial Services
Other General Services
Repairs and Maintenance
Infrastructure Assets
Buildings and Other Structure
Machinery and Equipment
Transportation Equipment
Taxes, Duties and Licenses and Other Fees
Taxes, Duties and Licenses
Fidelity Bond Premiums
Insurance Expenses
Other Maintenance and Operating Expenses
Advertising Expenses
Printing and Publications
Representation Expenses
Rent Expenses
Membership Dues and Contributions to
Organizations
Subscriptions Expenses
Donations
Other Maintenance and Operating
Expenses
Totals
2018
1,834,140.49
250,000.00
2017
1,391,605.89
250,000.00
477,858.94
164,800.00
194,500.00
1,497,379.05
699,618.94
219,210.00
47,000.00
778,417.00
0.00
1,993,647.86
6,000.00
222,667.00
31,120.00
48,000.00
1,663,710.37
95,075.00
150,648.05
1,633,806.40
141,405.98
1,409,914.91
4,850.00
390,899.67
5,700.00
381,601.21
6,630.00
13,314.00
170,750.00
796,750.00
203,000.00
8,134,262.50
282,000.00
6,559,215.88
693,843.24
635,670.90
82,190.00
354,983.50
67,423.00
917,397.32
93,177.00
384,529.40
38,408.16
151,781.56
319,673.10
21,756.96
32,272.50
308,649.60
337,500.00
237,733.00
865,348.25
880,501.00
33,000
258,452.50
820,707.38
891,950.00
24,400.00
3,846.25
2,378,826.25
18,000.00
1,541,331.25
002,547,827.49
P27,575,932.02
2,485,800.86
P24,006,125.89
932,613.94
17
Note 18 - Non-cash expenses
The total non-cash expenses in CYs 2018 and 2017 amounted to P4,865,557.80 and
P2,568,355.49, respectively and pertain to depreciation expenses for the following
PPEs:
Infrastructure Assets
Building and Other Structures
Machinery and Equipment
Transportation Equipment
Furniture, Fixtures and Books
Other PPE
Totals
2018
P 757,986.62
1,181,932.36
1,865,614.42
744,387.75
269,446.14
46,190.52
P4,865,557.81
2017
P 738,116.07
584,622.68
744,032.77
464,520.00
36,344.15
719.82
P2,568,355.49
Note 19 - Surplus/Deficit for the period
The CYs 2018 and 2017 current operation of the Municipality resulted in a surplus of
P10,015,758.44 and P13,654,339.17 respectively. The total revenues earned and
expenses incurred are as follows:
Total Revenues
Total Expenditures
Totals
2018
2017
P78,854,952.95 P73,811,822.61
(68,839,194.50) (60,157,483.44)
P10,015,758.45 P13,654,339.17
Note 20 - Prior Period Adjustments
The prior period adjustments for CY 2018 amounting to P508,830.73, resulted from the
following:
Refund of Disallowances
Refund of Deposit for 2017 Office
Supplies from DBM
Cancelled Checks Issued in 2017
Cancelled Credit Memo for March 2017
Payment made by the previous Mayor
for lost property
Interest income for the 4th quarter 2017
net of withholding tax
Totals
Total
P347,316.58
113,859.39
8,000.00
(3,600.00)
35,000.00
8,254.73
P508,830.70
Note 21 - Local Disaster Risk Reduction Management Fund (LDRRMF)
The LDRRMF represents the amount set aside by the Municipality to support its disaster
risk management activities pursuant to RA No, 10121 otherwise known as the
“Philippine Disaster Risk Reduction Management Act of 2010”. The amount available
18
and utilized during the year totaled P10,408,281.75 and P4,377,838.75 respectively,
broken down as follows:
Amount
Available
Utilized
Balance
Current year Appropriation
Quick Response Fund (QRF)
30 per cent
P1,117,993.04
P0.00 P1,117,993.04
Mitigation Fund (MF) 70 per cent
2,608,650.42
2,608,650.42
0.00
Reprogrammed
1,769,188.33
1,769,188.33
0.00
Totals
P5,495,831.79 P4,377,838.75 P1,117,993.04
Continuing Appropriation
Special Trust Fund
Calendar Year 2012
Calendar Year 2013
Calendar Year 2014
Calendar Year 2015
Calendar Year 2016
Sub-Totals
Grand Totals
P
816.84
253,861.33
377,683.23
2,132,178.53
2,147,910.03
P4,912,449.96
P10,408,281.75
0.00
0.00
0.00
0.00
0.00
0.00
P4,377,838.75
P
816.84
253,861.33
377,683.23
2,132,178.53
2,147,910.03
4,912,449.96
P6,030,443.00
Note 22 - Reconciliation of Cash Flows from the Operating Activities to Surplus
(Deficit)
The reconciliation of the net cash flows from operating activities to surplus is as follows:
2018
P10,015,758.44
259,281.43
508,830.70
4,865,557.81
5,172,540.09
(27,874.75)
(4,713,831.85)
P16,080,261.87
Surplus
Financing Charges
Net Effect of PPAs
Depreciation
Increase in Payables
Decrease in Current Assets
Increase in Receivables
Net Cash from Operating Activities
Note 23 - Reconciliation between actual amounts in the Statement of Comparison
of Budget and Actual Amounts and
the Statement of Financial
Performance
Consolidated
Comparison
Statement of Budget
and Actual Amounts
Entity Differences
Basis Differences
Income
not
considered
budgetary items
Personal
Services
MOOE
Financial
Expenses
Capital Outlay
Income
P77,687,050.45
P34,114,496.36
P27,575,932.02
P7,148,766.13
P3,425,861.63
19
Consolidated
Non-Cash
Income
Non-Cash
Expenses
Depreciation
Subsidy
to
Other Funds
Per Statement of
Financial
Performance
Income
(152,648.51)
Personal
Services
MOOE
Financial
Expenses
Capital Outlay
0.00
(4,865,557.81)
(2,023,576.89)
P77,534,401.94
P34,114,496.36
P27,575,932.02
P259,631.13
P3,425,861.63
20
PART II – AUDIT OBSERVATIONS AND
RECOMMENDATIONS
AUDIT OBSERVATIONS AND RECOMMENDATIONS
A. Financial and Compliance
1. The existence, reliability and correctness of the balances of Property, Plant
and Equipment (PPE) with a net book value of P93,372,933.89 as of December
31, 2018 could not be ascertained due to incomplete Physical Inventory of
PPE, absence of Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) and property cards prepared and maintained by the
Municipal General Services Office, as well as, lack of PPE Ledger Cards in the
Municipal Accounting Office, contrary to Sections 114, 119, 120 and 124 of the
Manual on the New Government Accounting System for Local Government
Units (MNGAS-LGUs), Volume I.
Quoted hereunder are some provisions of the MNGAS-LGUs, Volume I, to wit:
“Sec. 114. Perpetual Inventory Method.
The Chief Accountant shall maintain the perpetual inventory records
comprising of Property, Plant and Equipment Ledger Card (PPELC) for
each category of plant, property and equipment and Work, Other Animals
and Breeding Stocks Ledger Card (WOABSLC) for each type of livestock.
Such ledger cards shall contain the details of the property, plant and
equipment and livestock account in the inventory control account in the
general ledger.
The General Services Officer shall maintain property cards for property,
plant and equipment and work animals in their custody to account for the
receipt and disposition of the same. The balance per property cards
should always reconcile with the ledger cards of the accounting unit. They
should also reconcile with other property records like Acknowledgement
Receipt for Equipment (ARE).
Sec. 119. Property Records to be Maintained. – The General Services
Officer shall maintain Property Cards per category of property, plant and
equipment.
Deliveries of property shall be immediately recorded in the property
records on the basis of the Acceptance and Inspection Report (AIR) and
other supporting documents. The AIR and other supporting documents
shall be forwarded to the Chief Accountant for the recording of deliveries
in the appropriate ledger cards.
Sec. 120. Recording of Deliveries of Supplies or Property in the
Books of Accounts. – The Chief Accountant shall maintain Property,
Plant and Equipment Ledger Cards for each category of asset and Real
Property Ledger Cards for land.
Upon receipt of the AIR and other supporting documents, the Chief
Accountant shall record the deliveries in the appropriate ledger cards.
21
Upon completion of the disbursement process pertaining thereto the Chief
Accountant shall prepare the Journal Entry Voucher (JEV) taking up in the
books the procurement made. Thereafter, the Chief Accountant shall
reconcile the JEV with the appropriate ledger cards.
Sec. 124. Inventory of Supplies or Property. – The local chief executive
shall require periodic physical inventory of supplies or property. Xxx.
Physical count of property, plant, and equipment by type shall be made
annually and reported on the Report on the Physical Count of Property,
Plant and Equipment (RPCPPE). This shall be submitted to the Auditor
concerned not later than January 31 of each year.”
As of December 31, 2018, the Statement of Financial Position showed a net book
balance of PPE totalling P75,452,511.07 and Land amounting to P17,920,422.82 or
a total PPE of P93,372,933.89 as presented below:
Account Name
Infrastructure Assets
Road Networks
Flood Control System
Water Supply Systems
Power supply Systems
Sub-Total
Buildings and Other
Structures
Office Buildings
School Buildings
Hospitals and Health
Centers
Other Structures
Sub-Total
Machinery and Equipment
Office Equipment
Agricultural, Fishery and
Forestry Equipment
Communication
Equipment
Construction and Heavy
Equipment
Disaster Response and
Rescue Equipment
Medical Equipment
Sports Equipment
Other Machineries and
Equipment
Sub-Total
General Fund
P10,894,983.06
1,274,212.43
11,365,298.42
1,804,405.40
25,338,899.31
Special
Education
Fund (SEF)
P
Total
0.00
0.00
0.00
0.00
0.00
P10,894,983.06
1,274,212.43
11,365,298.42
1,804,405.40
25,338,899.31
3,920,523.72
40,155.01
0.00
83,340.45
3,920,523.72
123,495.46
65,032.74
25,905,144.49
29,930,855.96
0.00
0.00
83,340.45
65,032.74
25,905,144.49
30,014,196.41
1,157,382.72
466,624.88
1,624,007.60
1,311,622.00
0.00
1,311,622.00
156,850.06
123,000.00
279,850.06
488,934.00
0.00
488,934.00
1,982,052.23
313,932.20
187,097.79
0.00
0.00
49,200.00
1,982,052.23
313,932.20
236,297.79
915,150.92
6,513,021.92
0.00
638,824.88
915,150.92
7,151,846.80
22
Account Name
Transportation Equipment
Motor Vehicles
Watercrafts
Other Transportation
Equipment
Sub-Total
Furniture, Fixtures and
Books
Furniture and Fixtures
Information and
Communication
Technology Equipment
Books
Sub-Total
Other Property, Plant and
Equipment
Work/Zoo Animals
Other Property, Plant
and Equipment
Sub-Total
Net Book Value
Land
Total PPE
General Fund
Special
Education
Fund (SEF)
Total
6,658,195.25
325,534.00
0.00
0.00
6,658,195.25
325,534.00
2,135,225.00
9,118,954.25
0.00
0.00
2,135,225.00
9,118,954.25
1,465,940.94
5,425.00
1,471,365.94
1,789,104.45
0.00
3,255,045.39
13,386.00
10,380.25
29,191.25
1,802,490.45
10,380.25
3,284,236.64
62,000.00
0.00
62,000.00
482,377.66
0.00
544,377.66 __00000.00
74,701,154.49
751,356.58
17,920,422.82
0.00
P92,372,933.89 P751,356.58
482,377.66
544,377.66
75,452,511.07
17,920,422.82
P93,372,933.89
The audit disclosed that the Inventory Team conducted partial physical inventory of
PPE, however, the existence and correctness of the book value of the above cited
PPE could not be ascertained due to the absence of the RPCPPE prepared by the
Municipal General Services Officer (MGSO) as required under Section 124 of the
MNGAS – LGUs, Volume I.
Further inquiry revealed that the MGSO has no Property Card for each type of PPE
while the Municipal Accountant did not maintain PPE Ledger Card (PPELC) for each
category of assets and Real Property Ledger Cards for land, contrary to Sections 114,
119 and 120 of the MNGAS-LGUs, Volume I. Likewise, there were no copies of land
titles to prove the accuracy of the total amount of land.
The absence of the afore cited records made it impossible for the Audit Team to
perform other alternative procedures necessary to establish the reliability and
correctness of PPE valuation as well as the fair presentation of its balances in the
financial statements.
We reiterated our recommendations that the Municipal Mayor instruct both the
MGSO-Designate and Municipal Accountant to strictly comply with the above
stated provisions of the MNGAS-LGUs, Volume I, specifically:
a. Maintain Property Card (PC) and Property Ledger Card (PPELC) for each
PPE;
23
b. Reconcile PC with the PPELC; and
c. Conduct annual physical inventory of PPE and submit the report thereon
using the prescribed RPCPPE form to the Audit Team on or before January
31 of each year in compliance with Section 124 of the MNGAS-LGUs,
Volume I.
Management’s Comment:
The Municipal Mayor explained that an Inventory Team was already created in CY
2018 however, since no records were turned over to the new MGSO, the members
of the Inventory Team found difficulty in the retrieval of documents and PPE. For CY
2019, the Municipal Mayor informed that a new Inventory Team will be created to
expedite the conduct of physical inventory of PPE. The GSO-Designate and the
Municipal Accountant assured the preparation of PPE cards and PPELC and
reconciliation of both records with the RPCPPE.
At the same time, the Municipal Mayor will create an Appraisal Committee to reassess and appraise the values of the property owned by the Municipality with no
stated value in the RPCPPE.
2. Land acquired in Calendar Year 2018 and prior years consisting of 52 parcels
of land were not covered with Transfer Certificates of Title in the name of the
Municipality due to extensive verification of documents by the Registry of
Deeds (RD), contrary to Section 449 of the Government Accounting and
Auditing Manual (GAAM), Volume I, Section 148 of the Rules and Regulations
on Supply and Property Management (RRSPM) in the Local Government
prescribed under COA Circular No. 92-386 and Section 39(2) of Presidential
Decree (PD) No. 1445, thus, the reliability of the recorded Land account as of
December 31, 2018 totalling P17,920,422.82 is doubtful and the risk of third
party claims, land disputes and unlawful occupants.
Section 449 of the GAAM, Volume I provides:
“Land purchased by agencies of the government shall be evidenced
by a Torrens Title drawn in name of the government.”
Also, Section 148 of the RRSPM in the Local Government prescribed under COA
Circular No. 92-386 dated October 20, 1992 states:
“The Local Chief Executive shall be immediately responsible for the
proper and effective use and management of real estate owned or
titled in the name of the Local Government Unit. He shall ensure that
all estate under his responsibility are registered under the Torrens
Title System and safeguarded from squatters, unlawful occupants or
the like.”
24
Section 39 (2) of PD No. 1445 provides:
“In the case of deeds of property purchased by any government
agency, the Commission shall require a certificate of title entered in
favor of government or other evidence satisfactory to it that the title is
in the government.”
The Municipality’s Land account appearing in the financial statements as of
December 31, 2018 under the General Fund showed a total amount of
P17,920,422.82. Inquiry with the Municipal Assessor revealed that out of the 53
parcels of land, only one lot located in Barangay Tavera has a Transfer Certificate
of Title (TCT) No. T-13530 in the name of the Municipality of Pakil. Land purchased
in Calendar Year (CY) 2017 and prior years totalling 47 are shown in Appendix G
and ownership over these lands are only covered by copies of Tax Declaration.
However, application for titling of lands are on file with the Department of
Environment and Natural Resources (DENR) and with the Register of Deeds (RD)
and preparation of Tax Declarations on land purchased in CY 2018 totalling five are
still in process. But due to extensive verification of documents in the RD, titling of
lands could not be expedite.
As a result, the risk of third-party claims or land disputes is possible and the
reliability of the recorded untitled Land totalling P17,914,185.82 is doubtful.
We recommended that the Municipal Mayor direct the Municipal Treasurer,
General Services Officer and Municipal Assessor to expedite the processing
of TCTs for the 31 lots owned by Municipal Government of Pakil to protect the
interest of the Municipality and to ascertain the reliability of the recorded
Land account.
Management’s Comment:
The Municipal Assessor reasoned out that the list of Tax Declaration of property
submitted to COA includes 14 Tax Declarations of land with buildings and 38 Tax
Declarations pertains to parcels of Land owned by the Municipality. As alleged, of
the total 38 parcels of land, seven lots have TCTs already. The Municipal Assessor
is coordinating with the Register of Deeds to expedite the processing of TCTs of the
remaining 31 parcels of land.
Audit Team’s Rejoinder:
The Audit Team is still waiting for the revised list of Tax Declaration and the alleged
seven lots with TCTs is still subject for further verification.
3. The Municipality’s insurable property with a total net book value of
P30,339,730.41 were not insured with the Property Insurance Fund of the
General Service Insurance System (GSIS) due to incomplete inventory listing
of insurable property, and absence of budget for insurance premium, contrary
to Republic Act (RA) No. 656 or the Property Insurance Law and COA Circular
No. 92-390, thus the Municipality is exposed to the risk of not being fully
indemnified in cases of damage or loss of property.
25
Republic Act (RA) No. 656, otherwise known as the Property Insurance Law, as
amended, requires that all property, assets and interests of the Government shall
be insured with the General Insurance Fund (GIF), as administered by the GSIS.
Moreover, Section 11 of RA No. 656 requires each government agency to include in
its annual appropriation the amount necessary to cover the premiums for the
insurance of its property during each fiscal period and to remit immediately to the
System.
COA Circular No. 92-390 dated November 17, 1992 requires, among others, all
insurable assets and property of the government to be adequately covered/insured
with the GIF of the GSIS.
As of December 31, 2018, the Statement of Financial Position disclosed insurable
property owned by the Municipality with a total net book value of P30,339,730.41
which were not insured with the GIF as follows:
Particulars
Buildings
School
Buildings
Hospitals
and
Health
Centers
Other
Structures
Watercrafts
Totals
General Fund
P 4,431,266.87
Special
Education
Fund
P
0.00
Accumulated
Depreciation
P 510,743.15
Net Book
Value
P3,920,523.72
181,479.13
125,901.00
183,884.67
123,495.46
79,241.19
0.00
14,208.45
65,032.74
28,863,781.83
484,600.00
P34,040,369.02
0.00
0.00
P125,901.00
2,958,637.34
159,066.00
P3,826,539.61
25,905,144.49
325,534.00
P30,339,730.41
Interview with the Municipal General Services Officer (MGSO) – Designate revealed
that only the motor vehicles were covered with insurance while other property of the
Municipality as mentioned above were not insured with the GIF due to incomplete
listing of insurable property and absence of budget for insurance premium.
The inability of the Municipality to ensure the foregoing property with the GIF of the
GSIS is not in conformity with the provisions of RA No. 656 and COA Circular No.
92-390, thus exposing the Municipality to the risk of not being fully indemnified or
compensated in case of damage or loss or property due to fire, earthwake, storm or
other casualty.
We recommended that the Municipal Mayor:
a. direct the Municipal Budget Officer to include in the annual budget the
amount necessary for the insurance premiums of all insurable property;
and
26
b. instruct the MGSO to:
1. expedite the preparation and submission of the list of all insurable
property so that necessary insurance coverage can be applied with
the GIF; and
2. ensure that all insurable property are covered by property insurance
with the General Insurance Fund of the GSIS as required under RA
No. 656 and COA Circular No. 92-390 dated November 17, 1992.
Management’s Comment:
The Municipal Mayor instructed the MGSO-Designate to start the preparation of the
list of insurable property so that the Municipal Budget Officer can prepare a budget
for the property insurance premium with the GSIS and likewise, to include in the
annual budget for CY 2020 the amount needed to cover the premiums of all
insurable property of the Municipality.
4. Purchases of various supplies and materials totalling P2,399,824.99 were
directly charged to expense accounts due to inability of the Chief Accountant
and MGSO-Designate to maintain Supplies Ledger Cards and Stock Cards,
respectively, contrary to Sections 114 and 121 of the Manual on New
Government Accounting System (MNGAS) for Local Government Units
(LGUs), Volume I, thus, resulting in the understatement of the inventory
account and overstatement of the corresponding expense accounts by an
amount equivalent to the supplies and materials still on hand or not
consumed as of year-end.
Cited below are some provisions of the MNGAS-LGUs, Volume I, to wit:
“Section 114. Perpetual Inventory Method. - Purchase of supplies
and materials for stock, regardless of whether or not they are
consumed within the accounting period, shall be recorded as inventory
following the perpetual inventory method. Under the perpetual
inventory method, an inventory control account is maintained in the
General Ledger on a current basis. In addition, detailed inventory
records are maintained for each inventory item.
Regular purchases shall be coursed thru the inventory account and
issuances thereof shall be recorded as they take place, except those
purchased out of the petty cash fund which shall be for immediate use
and for stock in which case shall be charged immediately to the
appropriate expense accounts.
The Chief Accountant shall maintain the perpetual inventory records
comprising of Supplies Ledger Cards (SLC) for each commodity/stock.
Such ledger cards shall contain the details of the inventory control
account in the general ledger.
27
The General Services Officer shall likewise maintain stock cards for
supplies for the receipt and disposition of the same. The balance per
stock card/property cards should always reconcile with the ledger
cards of the accounting unit.”
Section 121. Reporting on Issuance of Supplies/materials. – The
General Services Officer shall consolidate weekly the Requisition
Issue Slip (RIS) for which supplies and materials were issued using the
Summary of Supplies and Materials Issued (SSMI). The SSMI
together with the original copy of the RIS shall be submitted to the
Chief Accountant, who shall compute cost of supplies issued and
ending inventory using the moving average method. Based on the
SSMI, a Journal Entry Voucher (JEV) shall be prepared to record the
expenditures using appropriate expenditure accounts.”
The Municipality purchased supplies and materials totalling P2,399,824.99 for CY
2018 consisting of the following:
Particulars
Office Supplies
Accountable Forms
Animal/Zoological Supplies
Welfare Goods
Drugs and Medicines
Other Supplies and Materials
Totals
Amount
P 477,858.94
164,800.00
6,000.00
222,667.00
1,497,379.05
31,120.00
P2,399,824.99
Verification of the Municipality’s accounting procedures reveal that they do not
maintain SLC on the purchases of inventory items, instead, the Municipal
Accountant draws a JEV directly debiting the appropriate expense accounts and
crediting cash upon receipt of delivery of supplies and materials, while the
Municipal General Services Officer - Designate issues said supplies and materials
directly to the end-users without furnishing the Municipal Accountant with the SSMI
together with the original RIS. Further, physical count of existing balances of
supplies and materials and reconciliation of the amount with the inventory account
were not conducted at year end.
The adopted practice is inconsistent with the above mentioned requirements of the
MNGAS-LGUs and resulted in the overstatement of the supplies and materials
expense accounts and understatement of the corresponding inventory account still
on hand or not consumed as of yearend.
We reiterated our recommendations that the Municipal Mayor direct the:
a. Municipal Accountant to:
a.1
maintain Supplies Ledger Cards (SLC) for each supply carried in
stock; and
28
a.2 recognize inventory account upon receipt of inventory items
purchased and adopt the perpetual inventory method in the
recording of Inventory accounts and charge to expense only those
items actually expended as provided under the MNGAS for LGUs,
Volume I, thus, avoid recording an outright expense for the
procurement of goods and supplies.
b. General Services Officer-Designate to submit to the Municipal Accountant
the Summary of Supplies and Materials Issued (SSMI) supported by
Requisition and Issue Slip (RIS) to support issuances of supplies and
materials from stock.
Management’s Comment:
Starting CY 2019, the Municipal Accountant already adhered with the audit
recommendation to maintain SLC, recognize the inventory account upon receipt of
inventory items and to adopt the perpetual inventory method.
In addition, the Municipal Mayor gave instructions to the MGSO and the Municipal
Accountant to print, use and maintain copies of the SLC, RIS and SSMI.
5. Hauling and disposal of garbage for Calendar Year (CY) 2018 were awarded to
the contractors through Small Value Procurement instead of competitive
Public Bidding and the Disbursement Vouchers for payments of these
transactions with a total amount of P574,510.00 were not supported with
complete documents, contrary to Section 10 of Republic Act (RA) No. 9184,
Section 4(6) of Presidential Decree (PD) No. 1445 and Item 9.1.3.2 of
Commission on Audit (COA) Circular No. 2012-001, thus, the propriety and
legality of the claims were doubtful.
Section 10 of RA No. 9184 states that
“All procurement shall be done through competitive bidding, except as
provided in Rule XVI of this IRR.”
Section 4(6) of PD No. 1445 otherwise known as the State Audit Code of the
Philippines provides that “Claims against government funds shall be supported with
complete documentation.”
Moreover, in addition to the perfected contract to be submitted to the Audit Team,
COA Circular No. 2012-001 dated June 14, 2012 prescribes specific requirements
for each type of disbursement, to wit:
“9.1.3.2 General Support Services - Garbage Collection and Disposal
 Complete
description/specifications
(brand
name,
model,
make/country of origin, hp, piston displacement, capacity) and
number of units of dump trucks to be used;
29
 Complete description/specifications (age, condition, brand, etc.) and
number of units of all other equipment to be rented/used;
 Appropriate approved documents containing the terms and
conditions, whether operated or bare rental for heavy equipment,
whether per trip or package deal; and other relevant condition;
 The designated dumpsite/location of dumpsite (if provided in a
separate document);
 The measurement in kilometers of the total distance covered by one
complete route for all the required routes to be traveled;
 Estimated volume in cubic meters of garbage to be hauled from
area of operation, including the basis for such estimates; and
 In cases where the type of contract differs from the usual per trip
contract basis, sufficient justification and comparative analysis
between the type of contract adopted against the basic per trip type
of contract”.
Audit of Disbursement Vouchers covering payments for hauling of garbage and
payment of tipping fee/final disposal amounting to P574,510.00 disclosed that
competitive bidding as required under Section 10 of RA No. 9184 were not
undertaken, instead, the Bids and Awards Committee (BAC), through different
resolutions, recommended the hauling of garbage services and tipping fee/final
disposal through Small Value Procurement.
Moreover, audit of transactions from January to July, 2018 showed that there were
no Contracts of Service between the Municipality and the Contractors that will serve
as a legal document which describes the terms and details on hauling and disposal
of garbage. A Memorandum of Agreement was signed only on August 14, 2018
between the Municipality and the Service Provider who serves as the dumping site
for the Municipality’s garbage.
Corollary thereto, the required documents cited under Item 9.1.3.2 of COA Circular
No. 2012-001 were not attached to the Disbursement Vouchers, as shown in
Appendix H.
The above cited practice of the Municipality with regard to the hauling of garbage
cast doubt on the propriety and legality of the transactions.
We recommended that the Municipal Mayor:
a. instruct the BAC Chairman and all other Officials concerned to explain the
reason why the Municipality still resorted to alternative method of
procurement on hauling of garbage instead of competitive public bidding
as required under Section 10 of RA 9184; and
30
b. execute a contract of service detailing the terms of reference supported
with complete documents, in compliance with the provisions of Section
4(6) of PD No. 1445 and COA Circular No. 2012-001.
Management’s Comment:
The Municipal Mayor promised to conduct a competitive public bidding and execute
a contract of service to comply with the provisions of Section 10 of RA No. 9184,
Section 4(6) of PD No. 1445 and COA Circular No. 2012-001.
6. The Ten-Year Municipal Solid Waste Management Plan (2015-2025) of the
Municipality of Pakil was not reviewed and updated by the Municipal Solid
Waste Management Board (MSWMB) every two years or as the need arises,
contrary to Section 4 (g), Rule VI of the Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 9003, thus the risk that efficient and effective
solid waste management may not be met.
Section 4 (g), Rule VI of the IRR of RA No. 9003, otherwise known as the
“Philippine Ecological Solid Waste Management Act of 2000” provides that:
“RULE VI. CREATION OF LOCAL SOLID WASTE MANAGEMENT
BOARDS
Section 1.Xxx.
Section 4. Creation of a City and Municipal Solid Wastes
Management Board
The City and Municipal SWM Boards shall have the following duties
and responsibilities:
a) Xxx.
g) Review every two (2) years or as the need arises the City or
Municipal Solid Waste Management Plan for purposes of ensuring
its sustainability, viability, effectiveness and relevance in relation to
local and international developments in the field of solid waste
management; Xxx.”
The Municipal Solid Waste Management Board (MSWMB) has developed a Ten
Year Solid Waste Management Plan (2015-2025) and was approved by the
National Solid Waste Management Commission (NSWMC) on November 25, 2015.
Review of the Ten-Year Municipal Solid Waste Management Plan (MSWMP)
disclosed that this was not updated by the MSWMB every two years or as the need
arises, thus the risk that efficient and effective solid waste management may not be
met.
We recommended that the Municipal Mayor direct the MSWMB to review and
update the Ten-Year MSWMP every two years or as the need arises to ensure
31
the sustainability, viability, effectiveness of the solid waste management
strategy of the Municipality, thus meet the objectives of the Plan.
Management’s Comment:
The implementation of the programs and activities relative to solid wastes is still in
accordance with the ten-year solid waste management plan (2015-2025), thus,
revision and/or updating of the plan is not yet advisable. The Municipality is
currently waiting for the result of the ongoing study on the plasma burning
technologies that might be adopted by the Municipality to improve its solid waste
management system.
Audit Team’s Rejoinder:
The Audit Team still encourage that the Ten-Year MSWMP be renewed and
updated every two years in compliance with Section 4 (g), Rule VI of the
Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9003.
7. Materials Recovery Facilities (MRFs) were not established in the barangays of
the Municipality of Pakil as required under Section 1, Rule XI of the
Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9003 and
Department of the Interior and Local Government (DILG) Memorandum
Circular (MC) No. 2009-168 due to non availability of spaces suitable for the
establishment of MRF, thus the full implementation of waste segregation at
source was not fully attained.
Section 1, Rule XI of the IRR of RA No. 9003, otherwise known as the “Philippine
Ecological Solid Waste Management Act of 2000” states that:
“RULE
XI.
MATERIALS
COMPOSTING
RECOVERY
FACILITIES
AND
Section 1. Operations of a Materials Recovery Facility
“Barangays shall be responsible for the collection, segregation,
recycling of biodegradable, recyclable, compostable and reusable
wastes. MRFs will be established in every barangay or cluster of
barangays.
The facility shall be established in a barangay-owned or leased land
or any suitable open space to be determined by the barangay through
its Sanggunian. For this purpose, the barangay or cluster of
barangays shall allocate a certain parcel of land for the MRF. The
determination of site and actual establishment of the facility shall
likewise be subject.
The MRF shall receive biodegradable wastes for composting and
mixed non-biodegradable wastes for final segregation, re-use and
recycling. Provided, that each type of mixed waste is collected from
the source and transported to the MRF in separate containers.
32
The resulting residual wastes shall then be transferred to a long-term
storage or disposal facility or sanitary landfill.
Materials recovery facilities shall be designed to receive, sort, process
and store compostable and recyclable material efficiently and in an
environmentally sound manner. The facility shall address the following
considerations:
The building and/or land layout and equipment must be designed to
accommodate efficient and safe materials processing, movement and
storage;
The building must be designed to allow efficient and safe external
access and to accommodate internal flow;
If the MRF includes a composting operation, it shall comply with the
provisions of Section 2 and of Rule XI of this IRR applicable to
composting and composts;
The following records shall be kept and maintained, such records
shall be submitted to the Department upon request:
Record of daily weights or volumes of waste received, processed and
removed from site accurate to within ten per cent (10per cent) and
adequate for overall planning purposes and tracking of success of
waste diversion goals; and
Daily logbook or file of the following information shall be maintained:
fire, special occurrences, unauthorized loads, injury and property
damage.
xxx.”
DILG Memorandum Circular No. 2009-168 dated October 27, 2009 also provides,
among others, the following:
“a. Closure of existing open dump sites;
b. Development and operation of sanitary landfill sites as final
disposal sites for solid and residual wastes;
c. Establishment of LGUs MRF in every barangay or cluster of
barangays in a barangay owned or leased land or in any suitable
open space; and
d. Allocation of a certain parcel of land by the barangay or cluster of
barangays for MRF.”
33
Interview with the Municipal Environment and Natural Resources Officer (MENRO)
disclosed that all barangays of the Municipality of Pakil have no existing MRFs,
contrary to Section 1, Rule XI of the IRR of RA No. 9003 and DILG Memorandum
Circular No. 2009-168 due to non availability of spaces suitable for the
establishment of MRF.
Instead, they are implementing the Materials Recovery
System (MRS) in which all wastes are collected for disposal except for the three
barangays namely: Barangays Baño, Dorado and Saray.
Review of the MRS disclosed that it was not designed to receive, process and store
recyclable wastes such as papers, cartons, glasses, plastics, bottles and metals.
All wastes collected were disposed to a designated landfill.
As envisioned, MRFs will separate different materials found in solid wastes in order
to promote recycling and reuse of resources to reduce the volume of waste for
collection and disposal. Hence, without MRF in barangays, the full implementation
of waste segregation at source was not fully attained.
We recommended that the Municipal Mayor:
a. instruct the Barangay Officials to:
a.1 look for conducive locations for the MRFs so that all barangays have
MRFs, in compliance with Section 1, Rule XI of the IRR of RA No. 9003
and DILG MC No. 2009-168; and
a.2 include a composting operation in the MRFs to be established and
ensure that these are fully operating and functioning, in compliance
with Section 1, Rule XI of the IRR of RA No. 9003.
b. direct the Municipal Solid Waste Management Board to:
b.1 monitor, evaluate and inspect the existing MRS of the Municipality in
order to strengthen its implementation; and
b.2 see to it that all Barangays have already established its own MRFs as
required under Section 4(b) and (c), Rule VI of the IRR of RA No. 9003.
Management’s Comment:
MENRO is currently looking for a suitable place to establish the MRF. In the
meantime, the Municipality is implementing the Material Recovery System due to
lack of MRFs in every barangay. Barangays need to be grouped to come up with
the actual number of MRFs to be installed and where to establish these MRFs.
The Municipal Mayor also instructed concerned Officers to adhere with the audit
recommendations.
8. Out of the 31 programs, projects and activities (PPAs) totalling P13,606,573.80
under the 20 per cent Development Fund (DF), only 17 PPAs or 55 per cent
amounting to P6,512,407.98 were implemented due to reprogramming, thus
34
the desired optimal utilization of the fund to attain the desirable socioeconomic development and environmental outcome was not met, contrary to
Section 5.0 of the Department of the Interior and Local Government (DILG)
and Department of Budget and Management (DBM) Joint Memorandum
Circular (JMC) No. 2017-1
Section 5.0 of the DILG-DBM JMC No. 2017-1 dated February 22, 2017 provides:
“It shall be the responsibility of every local chief executive to ensure
that the 20 per cent DF is optimally utilized to help achieve the
desirable socio-economic
development
and environmental
outcomes.”
On November 27, 2017, the Sanggunian Bayan of the Municipality of Pakil passed
Resolution No. 115 Series of 2017 approving Appropriation Ordinance No. 07
Series of 2017 appropriating a total of P74,532,869.00 for the General Fund to meet
planned expenditures for Calendar Year (CY) 2018 which includes appropriation for
Local Government Development Fund (LGDF) in the amount of P13,606,573.80
(Appendix I) or 20 per cent of the estimated Internal Revenue Allotment of
P68,032,869.00 for CY 2018.
The Annual Investment Plan for CY 2018 included 31 PPAs to be funded out of the
20 per cent LGDF however, audit disclosed that as of December 31, 2018, only a
total of 17 PPAs costing P6,512,407.98 (Appendix I) or 55 per cent of the total
appropriations under the 20 per cent LGDF were implemented due to
reprogramming. Out of the 17 PPAs 14 were completed while three are still ongoing
(Appendix I), details shown in Appendix H. The partial/non-implementation of the
projects would be disadvantageous to the municipal government considering that
prices are constantly increasing and the benefits from these projects could not be
immediately enjoyed by its constituents.
We recommended that the Municipal Mayor:
a. instruct the Municipal Planning and Development Coordinator (MPDC) and
the Municipal Engineer to determine and address the cause/s for the delay
and/or non-implementation of the 14 PPAs; and
b. employ regular monitoring mechanism in assessing the rate of progress of
project implementation thru closer coordination with the Municipal
Planning and Development Coordinator and Municipal Engineer to ensure
that programmed projects are implemented and completed on time.
Management’s Comment:
The Municipal Mayor instructed the MPDC and the Municipal Engineer to address
the cause/s of non-implementation of the PPAs and to employ a regular monitoring
mechanism in assessing the rate of progress of project implementation.
35
B. Local Disaster Risk Reduction and Management (LDRRM)
9.
The required Monthly Report on Utilization of Disaster Risk Reduction and
Management Fund (DRRMF) was not submitted to the Office of the Auditor,
contrary to Section 5.1.5 of COA Circular No. 2012-002 dated September 12002, thus hampering the timely review and evaluation of the utilization of the
fund.
Section 5.1.5. of COA Circular No 2012-002 dated September 12, 2012
states:
“A Report on Sources and Utilization of DRRMF using the format of
Annex B shall be prepared and certified correct by the Local
Accountant. The Local Disaster Risk Reduction and Management
Officer (LDRRMO) shall submit the report on or before the 15 th day
after the end of each month through the LDRRMC and Local
Development Council (LDC) to the COA Auditor of the LGU.”
Review of the 2018 Annual Budget showed that the Municipality has appropriated a
total amount of P3,726,643.45 as Local Risk Reduction and Management Fund
equivalent to 5 per cent of their estimated revenue from regular sources of
P74,532,869.00. Results of audit showed that the Local Disaster Risk Reduction
and Management Officer did not prepare and submit the required monthly Report
on Utilization of Disaster Risk Reduction and Management Fund, contrary to COA
Circular No. 2012-002, thus hampering the timely review and evaluation of the
utilization of the DRRMF.
We reiterated our recommendation that the Municipal Mayor require the Local
Disaster Risk Reduction and Management Officer to prepare and submit to the
Office of the Auditor the Report on Utilization of Disaster Risk Reduction and
Management Fund on or before 15 th day after the end of each month using the
format prescribed under Annex B of COA Circular No. 2012-02.
Management’s Comment:
Management assured compliance with the audit recommendation.
10. The unutilized amount of P956,092.06 of the Local Disaster Risk Reduction
Management Fund (LDRRMF) was not reverted back to the General Fund after
five years due to lack of monitoring of LDRRMF balances, contrary to Section
21 of Republic Act (RA) No. 10121 and COA Circular No. 2012-002.
Republic Act No. 10121 otherwise known as “The Philippine Disaster Risk
Reduction and Management Act of 2010”, prescribed, among others, the
management and use of the Local Disaster Risk Reduction and Management Fund
(LDRRMF) formerly known as the Calamity Fund.
COA Circular No. 2012-002 dated September 12, 2012 prescribes the Accounting
and Reporting Guidelines for the Local Disaster Risk Reduction and Management
36
Fund (LDRRMF) of Local Government Units (LGUs), National Disaster Risk
Reduction and Management Fund (NDRRMF) given to LGUs.
Paragraph 3, Section 21 of RA No. 10121 provides that “the unexpended LDRRMF
shall accrue to a special trust fund solely for purpose of supporting disaster risk
reduction and management activities of LDRRMCs within the next five years. Any
such amount still not fully utilized after five years shall revert back to the general
fund and will be available for other social services to be identified by the local
sanggunian”.
Section 5 of the COA Circular No. 2012-02 dated September 2, 2012 provide the
guidelines for accounting and reporting of Local Disaster Management Fund, to wit:
“5.0 Accounting and Reporting Guidelines
Xxx
5.1.13 The unutilized balance of the LDRRMF shall be available for use
in the disaster risk reduction and management activities as provided in
the LDRRMFIP within the next five years, Any unutilized amount after
five years shall be reverted back to the unappropriated surplus of the
General Fund and shall be made available for other social services after
subsequent enactment by the local sanggunian.
Review of the LDRRM Funds as of December 31, 2018 disclosed that the Municipal
Accountant was not able to revert the unutilized amount of P956,092.06 for
Calendar Years 2011 to 2013 from the Trust Fund Books to General Fund Books
due to lack of monitoring of LDRRMF balances. The inability of reverting the
unexpended LDRRMF balances to the General Fund resulted in the overstatement
of the trust liability account balances corresponding to the unexpended balances for
CY 2013 and prior years.
We recommended that the Municipal Mayor instruct the Municipal Accountant
to revert back the unutilized LDRRM Fund of CYs 2011 to 2013 to the General
Fund and to make the funds available for other social services.
Management’s Comment:
Management committed to comply with the audit recommendation.
Audit Team’s Rejoinder:
The Team will monitor full compliance of the audit recommendation.
C. Gender and Development (GAD)
11. The Annual Gender and Development Plan and Budget (GPB) and Gender and
Development Accomplishment Report (GAR) of the Municipality were not
submitted to the oversight government bodies, contrary to Joint Memorandum
Circular (JMC) No. 2013-01 of the Philippine Commission on Women, the
37
Department of the Interior and Local Government, the Department of Budget
and Management and the National Economic and Development Authority
(PCW-DILG-DBM-NEDA), thus, affecting the review and evaluation as to
whether the Municipality has developed GAD Plan and implemented programs
and activities that addressed gender issues as required under Republic Act
(RA) No. 9710.
JMC No. 2013-01 of the PCW-DILG-DBM-NEDA advocates the policies and
procedures in:
1. mainstreaming gender perspectives in local planning, programming and
budgeting;
2. local legislation;
3. project development, implementation, monitoring and evaluation pursuant to RA
No. 9710 or the Magna Carta of Women (MCW);
4. align efforts of Local Government Units (LGUs) and the National Government
Agencies (NGAs) on Gender and Development (GAD) and its commitments to
international declarations;
5. strengthen LGU to LGU and LGU to NGA relations on GAD planning,
programming, budgeting, project development, implementation, monitoring and
evaluation; and
6. specify the oversight roles of the DILG, PCW, DBM and NEDA in the localization
of the MCW.
Section C.2 to C.8 of the JMC No. 2013-01 provides detailed guidelines on the
preparation of GPB and the GAR and their submission to designated oversight
government offices.
Moreover, Section C.9 of the JMC requires the COA to conduct audit of GAD Funds
annually, to wit:
1) Pursuant to MCW Section 36 and this JMC, the Commission on
Audit (COA) shall conduct an annual audit of GAD funds for the
purpose of determining the judicious use of the GAD budget and the
efficiency and effectiveness of interventions in addressing gender
issues towards the realization of the objectives of the country’s
commitments, plans and policies on GAD, gender equality and
women’s empowerment.
2) Provided further in MCW-IRR Section 37, the COA shall conduct an
annual audit of GAD funds of all government agencies, offices,
bureaus, SUCs, GOCCs, LGUs, all government instrumentalities
and all others concerned.
38
As mandated by the above JMC, the COA Audit Team requested the Municipality’s
Annual GPB and GAR for CY 2018 from the GAD Focal Person. However,
approved GPB together with the certificate of approval from DILG Regional Office
was not submitted to the COA Audit Team, contrary to JMC No. 2013-01.
The non-submission of the approved GPB and GAD AR affect the review and
evaluation as to whether the Municipality has developed GAD Plan and
implemented programs and activities that addressed gender issues as required
under RA No. 9710.
We recommended that the Municipal Mayor require the GAD Focal Person and
all other concerned Officials to prepare the GAD Plan and Budget and GAD
Accomplishment Report using the format prescribed in Annexes D and E of
the JMC No. 2013-01 and submit the reports to all government agencies
concerned for review and evaluation.
Management’s Comment:
Management assured compliance with the audit recommendation.
D. Compliance with Tax Laws and Regulations
Revenue Regulations No. 2-98 requires every withholding agent to make a return
and remit taxes withheld on compensation, VAT and Non-VAT to authorize agent
banks within the Revenue District Office on or before the 10 th day of the month
following the month when the withholding was made. The Municipal Government of
Pakil had complied with the regulations.
E. Unsettled Suspensions, Disallowances and Charges
The Statement of Audit Suspensions, Disallowances and Charges (SASDC) as of
December 31, 2018 showed no suspension and charges and disallowances of
P155,914.61.
F.
Compliance with the Government
Premium
Remittances
Service
Insurance
System (GSIS)
The Municipality has complied with the required deductions of GSIS premiums for
Social Insurance Fund and Employees’ Compensation Insurance Fund from the
salaries of employees and promptly remitted them to the GSIS within the first ten
days of the calendar month following the month to which the contributions apply.
G. Official Development Assistance (ODA) Funded Projects
The Municipal Government of Pakil has no Official Development Assistance (ODA)
funded projects during the Calendar Year 2018.
39
PART III - STATUS OF IMPLEMENTATION OF
PRIOR YEARS’ AUDIT RECOMMENDATIONS
STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
As of December 31, 2018, out of 13 audit recommendations embodied in the 2017 Annual Audit Report,
three were fully implemented, two were partially implemented and eight were not implemented by the
Municipal Government of Pakil.
Audit
Reference
Observations
2017
The existence and
Municipality correctness of the
of
Pakil balance of Property,
AAR
Plant and Equipment
Observation (PPE) with a net
No. 1, Page book
value
of
24.
P69,626,881.12
could
not
be
established due to:
(a) the inability of the
Municipal
General
Services
Officer
(MGSO) - Designate
to
conduct
a
complete
physical
count of PPE during
the year resulting in
the non-submission
of Report on the
Physical Count of
Property, Plant and
Equipment
(RPCPPE), and (b)
the inability of the
OIC
Municipal
Accountant
to
conduct
reconciliation
of
book balances of
PPE due to absence
of
PPE
Ledger
Cards, contrary to
Sections 114, 119,
120 and 124 of the
Manual on the New
Government
Accounting System
(MNGAS) for Local
Government
Units
(LGUs), Volume I
and Section 490 of
the
Government
Recommendations
We recommended
that the Municipal
Mayor instruct the
OIC-Municipal
Accountant and the
MGSO-Designate
to strictly comply
with the provisions
of the MNGAS for
LGUs, Volume I as
follows:
Management’s
Action
a) maintain property No action was
cards (PC) and taken on the
PPE
ledger recommendation
cards (PPELC)
for each type of
PPE;
Status of
Reason for
ImplementaPartial/Nontion
implementation
Not
Implemented
The Municipal
GSO-Designate
has
not
conducted full
inventory
of
PPE for the year
2018.
Reiterated
in
Audit
Observation No.
1, page 21.
b) reconcile PCs of No action was
the
taken on the
Supply/Property
recommendation
Officer with that
of the PPELC;
and
Not
Implemented
Reiterated
in
Audit
Observation No.
1, page 21.
c) conduct annual No action was
physical count of taken on the
inventory
of recommendation
PPEs and submit
to
the
Audit
Team
the
RPCPPE using
the
prescribed
form on or before
January 31 of
Not
Implemented
Reiterated
in
Audit
Observation No.
1, page 21.
40
Status of
Reason for
ImplementaPartial/Nontion
implementation
Audit
Observations
Accounting
and
Auditing
Manual
(GAAM).
Recommendations
each year.
Management’s
Action
2017
Municipality
of
Pakil
AAR
Observation
No. 2, Page
27.
Cash
advances
granted
to
the
Disbursing Officers
ranging
from
P43,425.05
to
P952,059.25 were in
excess
of
their
maximum
cash
accountabilities
of
P38,000.00
and
P141,333.00,
respectively,
contrary to Section
101(2)
of
Presidential Decree
(PD) No. 1445, thus
the risk that the
government may not
be fully indemnified
in
case
of
defalcations,
shortages
and
losses
of
government funds.
We recommended
that the Municipal
Mayor discontinue
the granting of cash
advances
to
accountable
officers in excess of
their
maximum
cash
accountabilities,
otherwise, instruct
the
accountable
officers to increase
their fidelity bonds
sufficient to cover
their
cash
accountabilities.
The
Municipal
Treasurer
granted
cash
advances
to
accountable
officers
within
their maximum
cash
accountabilities.
Fully
Implemented
2017
Municipality
of
Pakil
AAR
Observation
No. 3, Page
28.
Purchases of various
supplies
and
materials
totalling
P1,854,105.94 were
directly charged to
expense
accounts
instead of inventory
accounts, contrary to
Section 114 of the
Manual on the New
Government
Accounting System
(MNGAS) for Local
Government
Units
(LGUs), Volume I,
resulting
in
the
understatement
of
the
inventory
accounts
and
We recommended
that the Municipal
Mayor direct:
a. the OIC-Municipal No action was
Accountant
to taken on the
adopt
the recommendation.
Perpetual
Inventory Method
in accounting for
the receipt and
issuance
of
inventory
items
as provided under
Section 114 of the
MNGAS
for
LGUs, Volume I
and to refrain
from recording in
Not
Implemented
Reference
Reiterated
in
Audit
Observation No.
4, page 27.
41
Reference
Status of
Reason for
Audit
RecommenManagement’s ImplementaPartial/NonObservations
dations
Action
tion
implementation
overstatement of the
the
books
of
corresponding
accounts
all
expense
accounts
procurement
of
by
an
amount
supplies
and
equivalent to the
materials as an
supplies
and
outright expense;
materials still on
hand
or
not b.
the General No action was
Not
Reiterated
in
consumed as of
Services Officer- taken on the Implemented Audit
year-end.
Designate
to recommendation.
Observation No.
prepare
and
4, page 27.
submit
the
Summary
of
Supplies
and
Materials Issued
(SSMI) supported
by
Requisition
and Issue Slip
(RIS)
to
the
Municipal
Accountant
as
basis
in
the
recording of all
credits
to
inventory
accounts; and
c. the
OIC- No action was
Municipal
taken on the
Accountant
to recommendation.
maintain Supplies
Ledger
Cards
(SLC) for each
type
of
commodity/stock.
2017
Municipality
of
Pakil
AAR
Observation
No. 4, Page
30.
The
Municipality
could
have
generated additional
income from Real
Property Tax had the
realty
tax
delinquency
been
collected
totaling
P16,853,226.26,
inclusive of penalties
as of December 31,
2017
by
Not
Implemented
Reiterated
in
Audit
Observation No.
4, page 27.
Partially
Implemented
The Municipal
Treasurer could
not continuously
issue the Notice
of Delinquency
due
to
voluminous
tasks assigned
We recommended
that the Municipal
Mayor:
a.
direct
the
Municipal
Treasurer to send
Notice
of
Delinquency
to
delinquent
taxpayers
and
post notices of
The Municipality
had started the
tax
collection
campaign.
42
Reference
Audit
RecommenObservations
dations
implementing
the
delinquency
in
remedies
in
the
conspicuous
handling
of
places to improve
delinquencies,
as
their tax collection
provided for under
efficiency; and
Sections 254, 256
and 258 of Republic b.
make
Act (RA) No. 7160.
representation
with the Provincial
Treasurer on the
application
of
administrative and
judicial actions to
enforce
collections
of
delinquent
real
property taxes.
Management’s
Action
Status of
Reason for
ImplementaPartial/Nontion
implementation
to them
and
due to various
activities to be
attended to.
The Municipality
had started the
tax
collection
campaign.
Partially
Implemented
2017
Municipality
of
Pakil
AAR
Observation
No. 5, Page
32.
Report on Sources
and Utilization of the
Disaster
Risk
Reduction
and
Management Fund
(DRRMF) was not
submitted to the
COA Auditor on or
before the 15th day
after the end of each
month, contrary to
Section 5.1.5 of
COA Circular No.
2012-002,
thus
hindering the review
and evaluation of the
utilization of the
fund.
We reiterated our No action was
previous
year’s taken on the
audit
recommendation.
recommendation
that the Municipal
Mayor require the
MDRRMO
to
prepare the Report
on the Sources and
Utilization of the
DRRMF regularly,
certified correct by
the
Municipal
Accountant
and
submit the same to
the Audit Team on
or before the 15th
day after the end of
each month as
required
under
COA Circular No.
2012-002.
Not
Implemented
2017
Municipality
of
Pakil
AAR
Observation
No. 6, Page
33.
Of the 20 per cent
Development Fund
appropriation totaling
P12,683,559.00 for
CY
2017,
only
P7,730,240.29
or
60.95 per cent was
We reiterated our
previous
year’s
audit
recommendation
that the Municipal
Mayor require the
Municipal Planning
Not
Implemented
MPDC did not
fully implement
the
programs,
projects
and
activities under
the 20 per cent
Development
The MDRRMO
was not able to
submit
the
report to the
Audit Team.
Reiterated
in
Audit
Observation No.
9, page 36.
Reiterated
in
Audit
Observation No.
8, page 34.
43
Status of
Reason for
ImplementaPartial/Nontion
implementation
Audit
Observations
utilized, contrary to
Item No. 5 of the
Joint Memorandum
Circular (JMC) No.
2011-1
of
the
Department of the
Interior and Local
Government (DILG)
and Department of
Budget
and
Management (DBM),
thus depriving the
intended
beneficiaries of the
maximum
benefits
that could be derived
there from.
Recommendations
Development
Coordinator to see
to it that the 20 per
cent Development
Fund are optimally
utilized to help
achieve
desired
developmental
outcomes.
Management’s
Action
Fund
2017
Municipality
of
Pakil
AAR
Observation
No. 7, Page
34.
The
Municipal
Government did not
prepare
a
comprehensive plan
for the Local Council
for the Protection of
Children (LCPC) for
Calendar Year 2017
nor fully allocate one
per cent of their
Internal
Revenue
Allotment (IRA) for
the LCPC, contrary
to Section 15 of
Republic Act (RA)
No.
9344,
thus
affected their ability
to meet their social
responsibility
of
improving the lives
of the youth and
protecting
them
against all kinds of
abuse, exploitation
and discrimination.
We recommended
that the Municipal
Mayor direct the
MSWD officials to
prepare
a
comprehensive
plan translated into
specific
PPAs
aimed at improving
the lives of the
youth
and
protecting
them
from all kinds of
abuse, exploitation
and discrimination
and to fully allocate
one per cent of
their IRA for the
LCPC
in
compliance
with
Section 15 of RA
9344.
The
MSWD
officials prepared
a comprehensive
plan and the
Budget
Officer
allocated one per
cent of their IRA
for
LCPC.
Fully
Implemented
2017
Municipality
of
Pakil
AAR
The
Municipality
appropriated
only
P500,000.00
in
Calendar Year (CY)
We recommended
that the Municipal
Mayor instruct the
Municipal Budget
The
Municipal
Budget
Officer
allocated
the
required amount
Fully
Implemented
Reference
44
Audit
Reference
Observations
Observation 2017 for Gender and
No. 8, Page Development Plans,
35.
Programs
and
Activities, which is
lower
than
the
required amount of
at
least
P3,454,114.75 or 5
per cent of the
approved
2017
budget
of
P69,082,295.00, by
P2,954,114.75,
contrary to
Joint
Circular No. 2004-1
of the Department of
Budget
and
Management (DBM),
National Economic
and
Development
Authority
(NEDA)
and the National
Commission on the
Role
of
Filipino
Women (.NCRFW),
thus, resulting in
inadequate
resources
to
implement Gender
and Development
(GAD) activities.
RecommenManagement’s
dations
Action
Officer
to for GAD.
appropriate
the
required amount for
GAD in compliance
with Joint Circular
No. 2004-1 of the
DBM, NEDA and
the NCRFW.
Status of
Reason for
ImplementaPartial/Nontion
implementation
45
PART IV - APPENDICES
Appendix A
AAR Page No. 4
MUNICIPALITY OF PAKIL
Statement of Financial Position (By Fund)
As of December 31, 2018
PARTICULARS
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS
Cash on Hand
Cash Local Treasury
Cash in Bank-Local Currency
Cash in Bank -Local Currency, Current Account
Total Cash and Cash Equivalent
INVESTMENTS
RECEIVABLES
Loans and Receivable Accounts
Accounts Receivable
Real Property Tax Receivable
Inter-Agency Receivables
Special Education Tax Receivable
Intra-Agency Receivables
Due from Other Funds
Total Receivables
INVENTORIES
Inventory Held for Consumption
Food Supplies Inventory
Total Inventories
PREPAYMENTS and DEFERRED CHARGES
Prepayments
Total Prepayments and Deferred Charges
Total Current Assets
NON- CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT
Land
Land
Infrastructure Assets
Road Networks
Accumulated Depreciation-Road Networks
Flood Control Systems
Accumulated Depreciation-Flood Control Systems
Water Supply Systems
Accumulated Depreciation-Water Supply Systems
Power Supply Systems
Accumulated Depreciation-Power Supply Systems
Buildings and Other Structures
Buildings
Accumulated Depreciation-Buildings
School Buildings
Accumulated Depreciation-School Buildings
Hospitals and Health Centers
Accumulated Impairment Losses-Hospitals and Health
Centers
Other Structures
Accumulated Depreciation-Other Structures
Machinery and Equipment
Office Equipment
Accumulated Depreciation-Office Equipment
Information and Communication Technology
Equipment
Accumulated Depreciation-Information and
Communication Technology Equipment
Agricultural and Forestry Equipment
Accumulated Depreciation-Agricultural and Forestry
Equipment
Communication Equipment
Accumulated Depreciation-Communication Equipment
Construction and Heavy Equipment
Accumulated Depreciation-Construction and Heavy
Equipment
TOTAL
P
1,896,630.94 P
GF
SEF
113,243.69 P
TF
12,433.56 P
1,770,953.69
39,855,605.40
41,752,236.34
10,229,696.27
10,342,939.96
974,954.44
987,388.00
28,650,954.69
30,421,908.38
7,222.33
20,317,442.19
7,222.33
20,317,442.19
0.00
0.00
0.00
0.00
20,317,442.19
0.00
20,317,442.19
0.00
2,900,592.00
43,542,698.71
2,895,592.00
23,220,256.52
0.00
20,317,442.19
5,000.00
5,000.00
99,792.00
99,792.00
99,792.00
99,792.00
0.00
0.00
0.00
0.00
4,082.75
4,082.75
85,398,809.80
4,082.75
4,082.75
33,667,071.23
0.00
0.00
21,304,830.19
0.00
0.00
30,426,908.38
17,920,422.82
17,920,422.82
0.00
0.00
11,447,644.66
(552,661.60)
1,393,643.63
(119,431.20)
11,790,525.50
(425,227.08)
1,967,688.00
(163,282.60)
11,447,644.66
(552,661.60)
1,393,643.63
(119,431.20)
11,790,525.50
(425,227.08)
1,967,688.00
(163,282.60)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,431,266.87
(510,743.15)
307,380.13
(183,884.67)
79,241.19
4,431,266.87
(510,743.15)
181,479.13
(141,324.12)
79,241.19
0.00
0.00
125,901.00
(42,560.55)
0.00
0.00
0.00
0.00
0.00
0.00
(14,208.45)
28,863,781.83
(2,958,637.34)
(14,208.45)
28,863,781.83
(2,958,637.34)
0.00
0.00
0.00
0.00
0.00
0.00
2,392,036.48
(768,028.88)
1,811,478.48
(654,095.76)
580,558.00
(113,933.12)
0.00
0.00
3,575,482.43
3,418,732.43
156,750.00
0.00
(1,772,991.98)
1,535,500.00
(1,629,627.98)
1,535,500.00
(143,364.00)
0.00
0.00
0.00
(223,878.00)
686,748.25
(406,898.19)
1,340,000.00
(223,878.00)
536,748.25
(379,898.19)
1,340,000.00
0.00
150,000.00
(27,000.00)
0.00
0.00
0.00
0.00
0.00
(851,066.00)
(851,066.00)
0.00
0.00
46
PARTICULARS
TOTAL
Disaster Response and Rescue Equipment
Accumulated Depreciation-Disaster Response and
Rescue Equipment
Medical Equipment
Accumulated Depreciation-Medical Equipment
Sports Equipment
Accumulated Depreciation-Sports Equipment
Other Machinery and Equipment
Accumulated Depreciation-Other Machinery and
Equipment
Transportation Equipment
Motor Vehicles
Accumulated Depreciation-Motor Vehicles
Watercrafts
Accumulated Depreciation-Watercrafts
Accumulated Impairment Losses-Watercrafts
Other Transportation Equipment
Accumulated Depreciation-Other Transportation
Equipment
Furniture, Fixtures and Books
Furniture and Fixtures
Accumulated Depreciation-Furniture and Fixtures
Books
Accumulated Depreciation-Books
Other Property, Plant and Equipment
Work/Zoo Animals
Other Property, Plant and Equipment
Accumulated Depreciation - Other Property, Plant
and Equipment
Total Property, Plant and Equipment
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Financial Liabilities
Payables
Accounts Payable
Total Payables
Bills/Bonds/Loans Payable
Loans Payable - Domestic
Total Bills/Bonds/Loans Payable
Total Financial Liabilities
Inter-Agency Payables
Due to BIR
Due to GSIS
Due to NGAs
Due to GOCCs
Due to LGUs
Total Inter-Agency Payables
Intra-Agency Payables
Due to Other Funds
Total Intra-Agency Payables
Trust Liabilities
Trust Liabilities - Disaster Risk Reduction and
Management Fund
Bail Bonds Payable
Guaranty/Security Deposits Payable
Total Trust Liabilities
Deferred Credits/Unearned Income
Deferred Real Property Tax
Deferred Special Education Tax
Total Deferred Credits/Unearned Income
Other Payables
Other Payables
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS/EQUITY
Net Assets/Equity (Annex D)
Total Net Assets/Equity
TOTAL LIABILITIES AND NET ASSETS/EQUITY
DIFFERENCE (Assets vs. Liabilities and Net Assets/Equity)
Total Assets
Total Liabilities
Total Net Assets/Equity
GF
2,468,470.00
(486,417.77)
553,960.00
(240,027.80)
294,921.00
(58,623.21)
1,957,620.15
TF
0.00
0.00
(486,417.77)
553,960.00
(240,027.80)
234,921.00
(47,823.21)
1,957,620.15
0.00
0.00
0.00
60,000.00
(10,800.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(1,042,469.23)
(1,042,469.23)
0.00
0.00
9,277,950.00
(2,619,754.75)
484,600.00
(159,066.00)
2,640,000.00
9,277,950.00
(2,619,754.75)
484,600.00
(159,066.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,640,000.00
0.00
0.00
(504,775.00)
(504,775.00)
0.00
0.00
1,844,610.48
(373,244.54)
15,550.00
(5,169.75)
1,836,860.48
(370,919.54)
0.00
0.00
7,750.00
(2,325.00)
15,550.00
(5,169.75)
0.00
0.00
0.00
0.00
62,000.00
515,129.00
62,000.00
515,129.00
0.00
0.00
0.00
0.00
0.00
751,356.58
751,356.58
22,056,186.77
0.00
0.00
0.00
30,426,908.38
(32,751.34)
93,372,933.89
93,372,933.89
178,771,743.69
P
SEF
2,468,470.00
(32,751.34)
92,621,577.31
92,621,577.31
126,288,648.54
2,677,884.98
2,677,884.98
2,347,822.98
2,347,822.98
330,062.00
330,062.00
0.00
0.00
1,996,306.93
1,996,306.93
4,674,191.91
1,996,306.93
1,996,306.93
4,344,129.91
0.00
0.00
330,062.00
0.00
0.00
0.00
815,569.81
192,063.00
15,582,556.40
57,790.48
5,101,793.79
21,749,773.48
0.00
0.00
0.00
0.00
24,535.00
24,535.00
0.00
0.00
0.00
0.00
0.00
0.00
815,569.81
192,063.00
15,582,556.40
57,790.48
5,077,258.79
21,725,238.48
3,019,470.89
3,019,470.89
2,144,396.71
2,144,396.71
0.00
0.00
875,074.18
875,074.18
6,030,443.00
21,360.00
1,688,460.59
7,740,263.59
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,030,443.00
21,360.00
1,688,460.59
7,740,263.59
20,317,442.19
20,317,442.19
40,634,884.38
20,317,442.19
20,317,442.19
0.00
20,317,442.19
20,317,442.19
0.00
0.00
0.00
86,332.13
77,904,916.38
77,904,916.38
0.00
26,830,503.81
26,830,503.81
0.00
20,647,504.19
20,647,504.19
86,332.13
30,426,908.38
30,426,908.38
1,408,682.58
1,408,682.58
22,056,186.77 P
0.00
0.00
30,426,908.38
100,866,827.31
99,458,144.73
100,866,827.31
99,458,144.73
178,771,743.69 P 126,288,648.54 P
#REF!
77,904,916.38
#REF!
126,288,648.54
26,830,503.81
99,458,144.73
22,056,186.77
20,647,504.19
1,408,682.58
-
47
30,426,908.38
Appendix B
AAR Page No. 5
MUNICIPALITY OF PAKIL
Statements of Financial Performance
For the Year Ended December 31, 2018
PARTICULARS
REVENUE
TAX REVENUE
Individual and Corporation
Professional Tax
Community Tax
Property
Real Property Tax - Basic
Less: Discount on Real Property Tax - Basic
Special Education Tax
Less: Discount on Special Education Tax
Goods and Services
Business Tax
Amusement Tax
Franchise Tax
Fines and Penalties
Tax Revenue-Fines and Penalties-Taxes on Individual and
Corporation
Total Tax Revenues
SHARE FROM NATIONAL TAXES
Share from Internal Revenue Collections
BUSINESS AND SERVICE INCOME
Service Income
Permit Fees
Registration Fees
Clearance and Certification Fees
Inspection Fees
Fishery Rentals, Fees and Charges
Fees for Sealing and Licensing of Weights and Measures
Other Service Income
Business Income
Receipts from Cemetery Operation
Garbage Fees
Hospital Fees
Interest Income
Other Business Income
Total Service and Business Income
SHARES, GRANTS AND DONATIONS
Shares
Share from PCSO
Total Shares, Grants and Donations
TOTAL REVENUE
LESS: CURRENT OPERATING EXPENSES
PERSONNEL SERVICES
Salaries and Wages
*
Salaries and Wages - Regular
*
Salaries and Wages - Casual/Contractual
Other Compensation
*
Personnel Economic Relief Allowance (PERA)
*
Representation Allowance (RA)
*
Transportation Allowance (TA)
*
Clothing/Uniform Allowance
*
Subsistence Allowance
*
Laundry Allowance
*
Hazard Pay
*
Longevity Pay
*
Overtime and Night Pay
*
Year End Bonus
*
Cash Gift
Personnel Benefits Contributions
*
Life and Retirement Insurance Contributions
*
PAG-IBIG Contributions
*
PHILHEALTH Contributions
*
Employees Compensation Insurance Premiums
Other Personnel Benefits
*
Terminal Leave Benefits
*
Other Personnel Benefits
Total Personnel Services
MAINTENANCE AND OTHER OPERATING EXPENSES
Travelling Expenses
Travelling Expenses - Local
TOTAL
P
0.00
317,650.26 P
942,620.51
(120,844.51)
1,148,064.45
(120,844.51)
GF
0.00
317,650.26
942,620.51
(120,844.51)
0.00 P
0.00
TF
SEF
0.00
0.00
0.00
0.00
1,148,064.45
(120,844.51)
0.00
0.00
0.00
0.00
0.00
0.00
1,194,475.76
45,698.65
21,896.07
1,194,475.76
45,698.65
21,896.07
0.00
0.00
0.00
0.00
0.00
0.00
22,127.81
3,428,716.68
22,127.81
2,423,624.55
0.00
1,027,219.94
0.00
0.00
68,032,869.00
68,032,869.00
0.00
0.00
1,393,495.68
891,473.00
231,796.00
156,741.00
400.00
3,695.00
265,880.00
1,393,495.68
891,473.00
231,796.00
156,741.00
400.00
3,695.00
265,880.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
262,511.89
32,430.00
132,820.00
41,449.44
2,378,680.00
5,791,372.01
262,511.89
32,430.00
132,820.00
41,449.44
2,378,680.00
5,791,372.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
259,316.44
259,316.44
77,512,274.13
259,316.44
259,316.44
76,507,182.00
0.00
0.00
1,027,219.94
0.00
0.00
0.00
17,512,017.91
2,342,496.58
17,512,017.91
2,342,496.58
0.00
0.00
0.00
0.00
2,170,866.67
1,512,000.00
1,419,600.00
528,000.00
66,539.37
32,549.69
30,500.00
70,000.00
154,362.29
1,762,711.80
456,000.00
2,170,866.67
1,512,000.00
1,419,600.00
528,000.00
66,539.37
32,549.69
30,500.00
70,000.00
154,362.29
1,762,711.80
456,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,376,564.61
363,846.60
265,651.34
93,151.86
2,376,564.61
363,846.60
265,651.34
93,151.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
959,424.64
1,998,213.00
34,114,496.36
959,424.64
1,998,213.00
34,114,496.36
0.00
0.00
0.00
0.00
0.00
0.00
656,439.36
656,439.36
0.00
0.00
48
PARTICULARS
Training and Scholarship Expenses
Training Expenses
Scholarship Expenses
Supplies and Material Expenses
Office Supplies Expense
Accountable Forms Expenses
Animal/Zoological Supplies Expenses
Food Supplies Expenses
Welfare Goods Expenses
Drugs and Medicines Expenses
Fuel, Oil and Lubrication Expenses
Other Supplies Expenses
Utility Expenses
Water Expenses
Electricity Expenses
Communication Expenses
Postage and Courier Service
Telephone Expenses
Internet Subscription Expenses
Cable, Satellite, Telegraph and Radio Expenses
Professional Services
Other Professional Services
General Services
Janitorial Services
Other General Services
Repairs and Maintenance
Repairs and Maintenance - Infrastructure Assets
Repairs and Maintenance - Building and Other Structures
Repairs and Maintenance - Machineries Equipment
Repairs and Maintenance - Transportation Equipment
Taxes, Insurance Premiums and Other Fees
Taxes, Duties and Licenses
Fidelity Bond Premiums
Insurance Expenses
Other Maintenance and Operating Expenses
Advertising Expenses
Printing and Publication Expenses
Representation Expenses
Rent Expenses
Membership Dues and Contributions to Organizations
Subscriptions Expenses
Donations
Other Maintenance and Operating Expenses
Total Maintenance and Operating Expenses
FINANCIAL EXPENSES
Financial Expenses
Interest Expenses
Bank Charges
Total Financial Expenses
Non-Cash Expenses
Depreciation
Depreciation - Infrastructure Assets
Depreciation - Buildings and Structures
Depreciation - Machinery and Equipment
Depreciation - Transportation Equipment
Depreciation - Furniture, Fixtures and Books
Depreciation - Other Property, Plant and Equipment
Total Non-Cash Expenses
TOTAL CURRENT OPERATING EXPENSES
SURPLUS (DEFICIT) FROM CURRENT OPERATIONS
ADD (DEDUCT): TRANSFERS, ASSISTANCE AND SUBSIDY
Assistance and Subsidy from
Subsidy from Other Funds
Total Transfers, Assistance and Subsidy from
Financial Assistance/Subsidy to
Subsidy to Other Local Government Units
Subsidy to Other Funds
Subsidy - Others
Total Transfers, Assistance and Subsidy to
NET FINANCIAL ASSISTANCE/SUBSIDY
Other Non-Operating Income
Miscellaneous Income
Miscellaneous Income
Net Other Non-Operating Income/Losses
SURPLUS (DEFICIT) FOR THE PERIOD
TOTAL
P
GF
TF
SEF
1,834,140.49
250,000.00
1,834,140.49
250,000.00
0.00
0.00
0.00
0.00
477,858.94
164,800.00
6,000.00
194,500.00
222,667.00
1,497,379.05
1,993,647.86
31,120.00
477,858.94
164,800.00
6,000.00
194,500.00
222,667.00
1,497,379.05
1,993,647.86
31,120.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
150,648.05
1,633,806.40
150,648.05
1,633,806.40
0.00
0.00
0.00
0.00
4,850.00
390,899.67
6,630.00
4,850.00
390,899.67
0.00
0.00
0.00
0.00
6,630.00
0.00
0.00
170,750.00
20,500.00
150,250.00
0.00
203,000.00
8,134,262.50
0.00
8,134,262.50
203,000.00
0.00
0.00
0.00
693,843.24
635,670.90
82,190.00
354,983.50
693,843.24
259,487.90
82,190.00
354,983.50
0.00
376,183.00
0.00
0.00
0.00
38,408.16
151,781.56
319,673.10
38,408.16
151,781.56
319,673.10
0.00
0.00
0.00
0.00
0.00
0.00
337,500.00
237,733.00
865,348.25
880,501.00
24,400.00
3,846.25
2,378,826.25
2,547,827.49
27,575,932.02
337,500.00
237,733.00
865,348.25
864,501.00
24,400.00
3,846.25
2,149,031.25
2,547,827.49
26,600,704.02
0.00
0.00
0.00
16,000.00
0.00
0.00
229,795.00
0.00
975,228.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
259,281.43
350.00
259,631.43
259,281.43
350.00
259,631.43
0.00
0.00
0.00
0.00
0.00
0.00
757,986.62
1,181,932.36
1,865,614.42
744,387.75
269,446.14
46,190.52
4,865,557.81
66,815,617.62
10,718,784.32
757,986.62
1,176,266.81
1,725,064.30
744,387.75
266,421.39
46,190.52
4,716,317.39
65,691,149.20
10,816,032.80
1,167,902.50
1,167,902.50
1,167,902.50
1,167,902.50
0.00
0.00
0.00
0.00
126,693.00
516,707.20
1,380,176.69
2,023,576.89
(855,674.39)
126,693.00
516,707.20
1,380,176.69
2,023,576.89
(855,674.39)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
152,648.51
152,648.51
10,015,758.44 P
152,648.51
152,648.51
10,113,006.92 P
0.00
5,665.55
140,550.12
0.00
3,024.75
0.00
149,240.42
1,124,468.42
(97,248.48)
0.00
0.00
(97,248.48) P
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
49
Appendix C
AAR Page No. 6
MUNICIPALITY OF PAKIL
Statement of Cash Flows (By Fund)
For the Year Ended December 31, 2018
PARTICULARS
Cash Flows from Operating Activities
Cash Inflows
P
Collection from taxpayers
Share from Internal Revenue Allotment
Receipts from business/service income
Interest Income
Dividend Income
Other Receipts
Total Cash Inflows
Cash Outflows
Payments of expenses
Payment to suppliers and creditors
Payment to employees
Total Cash Outflows
Net Cash Flows from Operating Activities
Cash Flows From Investing Activities
Cash Outflows
Purchase/Construction of Property, Plant and Equipment
Total Cash Outflows
Net Cash Flows from Investing Activities
Cash Flow from Financing Activities
Cash OutFlows
Payment of loan amortization
Total Cash Outflows
Net Cash Flows from Financing Activities
Total Cash Provided by Operating, Investing and Financing
Activities
Add : Cash at the Beginning of the year
Cash Balance Ending December 31
P
TOTAL
3,450,844.49 P
68,032,869.00
5,791,372.01
41,449.44
40,253,598.43
117,570,133.37
GF
2,423,624.55 P
68,032,869.00
5,791,372.01
41,449.44
3,917,098.01
80,206,413.01
TF
SEF
1,027,219.94
1,027,219.94
P
36,336,500.42
36,336,500.42
1,482,979.75
34,206,508.20
1,482,979.75
(455,759.81)
34,206,508.20
2,129,992.22
67,375,375.14
34,114,496.36
101,489,871.50
16,080,261.87
31,685,887.19
34,114,496.36
65,800,383.55
14,406,029.46
22,308,012.43
22,308,012.43
(22,308,012.43)
22,308,012.43
22,308,012.43
(22,308,012.43)
-
-
216,962.40
216,962.40
(216,962.40)
216,962.40
216,962.40
(216,962.40)
-
-
(6,444,712.96)
48,196,949.30
41,752,236.34 P
(8,118,945.37)
18,461,885.33
10,342,939.96 P
(455,759.81)
1,443,147.81
987,388.00 P
2,129,992.22
28,291,916.16
30,421,908.38
50
Appendix D
AAR Page No. 7
MUNICIPALITY OF PAKIL
Statement of Net Assets / Equity (By Fund)
For the Year Ended December 31, 2018
PARTICULARS
NET ASSETS/EQUITY
Balance at January 1
Add (Deduct)
Prior Period Errors
Restated Balance
Add (Deduct) Changes in net assets/equity during the Year
Adjustment of net revenue recognized directly in net assets/equity
Unrealized Gain/(Loss) from Changes in the Fair Value of Financial
Assets
Suplus (Deficit) for the period
Total recognized revenue and expenses for the period
Balance at December 31
TOTAL
GF
SEF
83,319,183.60
81,813,598.79
1,505,584.81
0.00
508,830.70
83,828,014.30
508,484.45
82,322,083.24
346.25
1,505,931.06
0.00
0.00
7,023,054.57
0.00
0.00
7,023,054.57
P
10,015,758.44
17,038,813.01
100,866,827.31 P
TF
10,113,006.92
(97,248.48)
17,136,061.49
(97,248.48)
99,458,144.73 P 1,408,682.58 P
0.00
0.00
0.00
51
Appendix E
AAR Page No. 8
Municipal Government of Pakil
Statement of Comparison of Budget and Actual Amounts
GENERAL FUND
For the Year Ended December 31, 2018
(In Philippine Peso)
Revenue
A. Local Sources
1. Tax Revenue
a. Tax Revenue - Property
b. Tax Revenue - Goods and Services
c. Other Local Taxes
Total Tax Revenue
2. Non-Tax Revenue
a. Service Income
b. Business Income
c. Other Income and Receipts
Total Non-Tax Revenue
B. External Sources
1. Share from the National Internal Revenue Taxes (IRA)
2. Share from GOCCs
3. Other Shares from National Tax Collections
a. Share from Ecozone
b. Share from EVAT
c. Share from National Wealth
d. Share from Tobacco Excise Tax
4. Other Receipts
a. Grants and Donations
b. Other Subsidy Income
5. Inter-local Transfer
6. Capital /Investment Receipts
a. Sale of Capital Assets
b. Sale of Investments
c. Proceeds from Collections of Loan Receivables
C. Receipts from Borrowings
Total Revenue and Receipts
Expenditures
Current Appropriations
General Public Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Education
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Health, Nutrition and Population Control
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
GENERAL FUND
Difference
Original and Final Budget
2018
2017
Budgeted Amounts
Particulars
Original
Final
2018
2017
2018
2017
1,287,000.00
1,511,000.00
390,000.00
3,188,000.00
1,170,000.00
1,242,000.00
355,000.00
2,767,000.00
1,287,000.00
1,511,000.00
463,500.00
2,253,500.00
3,099,000.00
5,816,000.00
425,000.00
4,137,500.00
505,000.00
5,067,500.00
68,032,869.00
63,417,795.00
390,000.00
3,188,000.00
463,500.00
1,170,000.00
1,242,000.00
355,000.00
2,767,000.00
-
-
821,776.00
1,262,070.48
339,778.07
2,423,624.55
1,342,344.00
1,308,146.25
335,299.21
2,985,789.46
465,224.00
248,929.52
50,221.93
764,375.45
3,312,000.00
-
2,943,480.68
2,847,891.33
411,964.95
6,203,336.96
2,239,153.41
2,531,208.22
959,946.52
5,730,308.15
68,032,869.00
63,417,795.00
-
68,032,869.00
63,417,795.00
76,659,830.51
72,133,892.61
(2,126,961.51)
-
26,162,086.80
13,541,248.04
2,453,015.29
25,384,894.35
10,321,904.91
1,063,645.92
481,972.39
1,580,505.72
50,057,753.14
595,000.00
77,036,869.00
71,252,295.00
74,532,869.00
71,252,295.00
28,201,326.31
11,277,205.89
26,759,859.94
10,392,250.00
4,473,507.55
26,644,059.19
15,121,753.76
52,510,768.43
26,759,859.94
10,392,250.00
4,473,507.55
1,557,267.12
(3,844,547.87)
(50,610,768.43)
-
-
-
-
-
-
-
-
-
-
-
3,133,791.68
1,761,000.00
2017
2,504,000.00
2,504,000.00
-
3,104,999.58
1,761,000.00
2018
425,000.00
4,137,500.00
505,000.00
5,067,500.00
2,253,500.00
2,504,000.00
1,900,000.00
Difference
Final Budget and Actual
2018
2017
Actual Amounts
2,983,221.69
1,761,000.00
3,133,791.68
1,761,000.00
121,777.89
-
-
-
-
-
-
-
-
(2,479,980.68) (1,814,153.41)
(594,391.33) 1,606,291.78
183,035.05
(454,946.52)
(2,891,336.96)
(881,597.61)
2,963,753.08
1,655,926.44
2,733,198.16
949,939.37
(172,344.00)
(66,146.25)
19,700.79
(218,789.46)
19,468.61
105,073.56
-
(881,597.61)
1,374,965.59
70,345.09
3,409,861.63
400,593.52
811,060.63
-
52
Budgeted Amounts
Particulars
Original
2018
Maintenance and Other Operating Expenses
Capital Outlay
Housing and Community Development
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Social Services and Social Welfare
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Economic Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Other Purposes:
Debt Service
Financial Expense
Amortization
LDRRMF
Maintenance and Other Operating Expenses
Capital Outlay
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay
Share from National Wealth
Maintenance and Other Operating Expenses
Capital Outlay
Allocation for Senior Citizens and PWD
Maintenance and Other Operating Expenses
Capital Outlay
Others
Special Purpose Appropriations
Maintenance and Other Operating Expenses
Capital Outlay
Total Current Appropriations
Continuing Appropriations
General Public Services
Capital Outlay
Education
Capital Outlay
Health, Nutrition and Population Control
Capital Outlay
Labor and Employment
Capital Outlay
Housing and Community Development
Capital Outlay
Social Services and Social Welfare
Capital Outlay
Economic Services
Capital Outlay
Other Purposes:
Capital Outlay
Total Continuing Appropriations
Total Appropriations
Surplus (Deficit) for the period
Final
2017
2018
2017
GENERAL FUND
Difference
Original and Final Budget
2018
2017
-
Difference
Final Budget and Actual
2018
2017
-
Actual Amounts
2018
2017
-
-
1,239,866.51
571,000.00
1,139,777.20
571,000.00
1,484,612.78
584,000.00
1,139,777.20
571,000.00
(244,746.27)
(13,000.00)
-
-
1,473,365.48
498,958.44
1,189,977.52
547,502.71
11,247.30
85,041.56
-
3,757,515.99
961,887.47
1,753,731.84
416,268.16
3,823,404.37
4,768,530.92
1,753,731.84
416,268.16
(65,888.38)
(3,806,643.45)
-
-
3,616,587.27
86,637.24
1,668,871.36
251,521.40
206,817.10
4,681,893.68
-
3,726,643.45
3,562,614.75
13,606,573.80
12,683,559.00
3,562,614.75
13,606,573.80
12,683,559.00
132,000.00
550,000.00
6,200,000.00
4,029,600.00
25,334.88
5,299,997.00
4,029,600.00
25,334.88
76,442,037.00
71,254,312.00
128,589,939.94
71,254,312.00
76,442,037.00
594,832.00
550,000.00
71,254,312.00 128,589,939.94
(2,017.00) (54,057,070.94)
3,726,643.45
-
-
-
-
-
-
132,000.00
900,003.00
(52,145,884.94)
2,330,966.95
8,981,573.87
2,017.00
-
-
-
-
-
7,730,240.29
549,580.00
5,113,671.64
4,570,575.00
66,546,823.59
59,294,834.94
4,624,999.93
-
(50,200.32)
23,497.29
84,860.48
164,746.76
-
1,231,647.80
4,953,318.71
-
-
-
-
420.00
-
186,325.36
62,043,116.35
(540,975.00)
25,334.88
11,961,494.06
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
71,254,312.00 (52,145,884.94)
(2,017.00) 54,649,884.94
2,017.00
(2,017.00)
-
-
66,546,823.59
10,113,006.92
-
-
59,294,834.94
12,839,057.67
62,043,116.35 11,961,494.06
(64,170,077.86) (12,843,091.67)
53
Appendix F
AAR Page No. 8
Municipal Government of Pakil
Statement of Comparison of Budget and Actual Amounts
SPECIAL EDUCATIONL FUND
For the Year Ended December 31, 2018
(In Philippine Peso)
Budgeted Amounts
Particulars
Original
2018
Revenue
A. Local Sources
1. Tax Revenue
a. Tax Revenue - Property
b. Tax Revenue - Goods and Services
c. Other Local Taxes
Total Tax Revenue
2. Non-Tax Revenue
a. Service Income
b. Business Income
c. Other Income and Receipts
Total Non-Tax Revenue
B. External Sources
1. Share from the National Internal Revenue Taxes (IRA)
2. Share from GOCCs
3. Other Shares from National Tax Collections
a. Share from Ecozone
b. Share from EVAT
c. Share from National Wealth
d. Share from Tobacco Excise Tax
4. Other Receipts
a. Grants and Donations
b. Other Subsidy Income
5. Inter-local Transfer
6. Capital /Investment Receipts
a. Sale of Capital Assets
b. Sale of Investments
c. Proceeds from Collections of Loan Receivables
C. Receipts from Borrowings
Total Revenue and Receipts
Expenditures
Current Appropriations
General Public Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Education
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Health, Nutrition and Population Control
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
2017
-
-
Difference
Original and Final Budget
2018
2017
Final
2018
1,087,510.94
330,000.00
110,000.00
1,527,510.94
-
2017
1,154,987.81
1,154,987.81
-
1,087,510.94
330,000.00
110,000.00
1,527,510.94
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,134,987.81
20,000.00
1,527,510.94
1,154,987.81
1,527,510.94
1,511,510.94
16,000.00
1,134,987.81
20,000.00
1,511,510.94
16,000.00
(1,154,987.81)
(1,154,987.81)
(1,154,987.81)
Difference
Final Budget and Actual
2018
2017
Actual Amounts
-
2018
2017
686,467.70
201,349.17
139,403.07
1,027,219.94
790,621.51
760,611.20
126,697.29
1,677,930.00
-
-
468,520.11
(201,349.17)
(139,403.07)
127,767.87
-
296,889.43
(430,611.20)
(16,697.29)
(150,419.06)
-
-
1,027,219.94
1,677,930.00
-
-
1,104,468.42
20,000.00
864,665.50
-
-
-
-
-
-
-
-
-
-
-
-
-
-
127,767.87
(150,419.06)
30,519.39
-
646,845.44
16,000.00
54
Budgeted Amounts
Particulars
Original
2018
Maintenance and Other Operating Expenses
Capital Outlay
Housing and Community Development
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Social Services and Social Welfare
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Economic Services
Personal Services
Maintenance and Other Operating Expenses
Capital Outlay
Other Purposes:
Debt Service
Financial Expense
Amortization
LDRRMF
Maintenance and Other Operating Expenses
Capital Outlay
20% Development Fund
Maintenance and Other Operating Expenses
Capital Outlay
Share from National Wealth
Maintenance and Other Operating Expenses
Capital Outlay
Allocation for Senior Citizens and PWD
Maintenance and Other Operating Expenses
Capital Outlay
Others
Special Purpose Appropriations
Maintenance and Other Operating Expenses
Capital Outlay
Total Current Appropriations
Continuing Appropriations
General Public Services
Capital Outlay
Education
Capital Outlay
Health, Nutrition and Population Control
Capital Outlay
Labor and Employment
Capital Outlay
Housing and Community Development
Capital Outlay
Social Services and Social Welfare
Capital Outlay
Economic Services
Capital Outlay
Other Purposes:
Capital Outlay
Total Continuing Appropriations
Total Appropriations
Surplus (Deficit) for the period
1,157,005.81
1,157,005.81
(1,157,005.81)
Final
2017
1,529,527.94
1,529,527.94
(2,017.00)
2018
1,157,005.81
1,157,005.81
(2,018.00)
2017
1,529,527.94
1,529,527.94
(2,017.00)
Difference
Original and Final Budget
2018
2017
-
Actual Amounts
2018
2017
Difference
Final Budget and Actual
2018
2017
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,018.00
2,017.00
1,124,468.42
866,682.50
32,537.39
664,862.44
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,018.00
(1,157,005.81)
2,017.00
(2,017.00)
1,124,468.42
(97,248.48)
866,682.50
811,247.50
32,537.39
95,230.48
664,862.44
(815,281.50)
55
57
Appendix H
AAR Page No. 30
List of Disbursement Vouchers
Hauling of Garbage and Tipping Fee/Final Disposal
Calendar Year 2018
Disbursement
Voucher No.
100201801074
100201804392
100201804409
100201804420
100201804444
100201804452
100201805556
100201805572
100201805583
100201806699
100201807825
Payee
DJO Hauling
Services
Basic
Environmental
System and
Technologies
Eyzon Yerro
Basic
Environmental
System and
Technologies
Basic
Environmental
System and
Technologies
Eyzon Yerro
Particulars
Truck hire for
hauling of solid
waste
Tipping fee for
solid waste
Truck hire for
hauling of solid
waste
Tipping fee for
solid
waste
disposal
Check
Date
Amount
482673
Jan. 29, 2018
P38,400.00
490101
April 13, 2018
35,000.00
490118
April 19, 2018
45,000.00
490129
April 23, 2018
35,000.00
490156
April 25, 2018
45,000.00
490164
490264
490280
490289
490407
April 27, 2018
May 23, 2018
May 30, 2018
-doJune 27, 2018
45,000.00
30,000.00
45,000.00
45,000.00
45,000.00
490533
July 24, 2018
45,937.50
490893
Oct. 22, 2018
23,887.50
539922
Oct. 26, 2018
25,725.00
540072
Dec. 14, 2018
26,837.50
Tipping fee for
solid waste
Truck hire for
hauling of solid
waste
-do-do-do-doTipping fee on
solid waste
Tipping
fee
(final disposal)
1002018101180
-do-do-do-doGEMTECH Gen.
Services Inc.
-do-
1002018101208
-do-
Tipping fee –
Sept. 3 to 28,
2018
1002018121359
-do-
1002018121358
-do-
1002018121440
-do-
Tipping fee for
final disposal –
Oct.
16-31,
2018
Tipping fee for
final disposal –
Oct.
1-15,
2018
Tipping fee –
Nov.
1-15,
2018
Total
No.
540089
540161
-do-
Dec. 18, 2018
20,580.00
23,152.50
P574,520.00
58
Appendix I
AAR Page No. 35
Municipality of Pakil
20 Per Cent Development Fund
Plans, Programs and Activities
For Calenday Year 2018
Plans and Programs
I. Social Development
1. Construction or rehabilitation of health centers, including lot
acquisition for the purpose
Appropriation
Implemented
Project Cost
Accomplishment/S
tatus
100,000.00
51,635.00
Completed
2. Construction or rehabilitation of Brgy. Waterwoks System and
Sanitation
300,000.00
143,247.00
On-going
3. Establishment or rehabilitation of Manpower Development Centers
100,000.00
4. Construction or rehabilitation of evacuation centers, including land
aquistion for the purpose
300,000.00
300,000.00
Completed
5. Rehabilitation mof historical sites classified as such by the NHCP
500,000.00
6. Purchase and Development of land for the relocation of informal
settles and relocation of victims of calamities
100,000.00
100,000.00
Completed
1,000,000.00
895,631.96
Completed
300,000.00
220,000.00
Completed
7. Construction or rehabilitation of multipurpose halls, including land
acquisition for the purpose
8. Installation and maintenance of street lighting system, including
solar power model and LED lights
II Economic Development
9. Construction or rehabilitation of communal irrigation or water
impounding system
100,000.00
10. Purchase or lease of post-harvet facilities, such as farm or hand
tractor with trailer, thresher and mechanical driers and other farm
implements
Construction or rehabilitation of Municipal and Brgy roads and
bridges and purchase of appropriate engineering equipment
200,000.00
30,000.00
Completed
11. Selective reblocking, Brgy. Gonzales
500,000.00
415,601.00
Completed
12. Rehabilitation of Drainage Canal, Brgy Gonzales
200,000.00
197,738.24
Completed
13. Construction of open canal, feeder road, Brgy taft
170,000.00
14. Construction of Brgy. Rd. (100x4x2), Brgy Kabulusan
880,000.00
15. Concreting Pinagkampohan Pathwayu, Brgy Taft
150,000.00
16. Construction of alternate road 0.196 km (Pakil-Paete Boundary)
1,400,000.00
17. Improvement and Beautification of Iglesia Street (43x6.6m) and
vicinity
1,300,000.00
59
Plans and Programs
Amount
Project Cost
Accomplish ment
Capital expendityres related to the implementation of livelihood
or entreneurship/local development projects/programs:
Economic Enterprises
18. i) Turumba Springs Swimming Pool
125,000.00
27,880.00
Completed
19. ii) Public Cemeteries
125,000.00
20. Tourism Development (AVP and Brochure Production; ATOPRecognition and Award Promotion, other related activities)
500,000.00
500,000.00
Completed
1,700,000.00
1,700,000.00
Completed
22. Livelihood/Entrepreneurship Program (senior citizens, OSY,
Women, PWD, others)
500,000.00
200,000.00
Completed
23. Agricultural Livelihood Program
200,000.00
24. E-Governance Initiative and related facilities (information
Technology)
156,573.80
156,573.80
Completed
25. Zoning Administration/Implementation(MDC)
100,000.00
26. Revenue Generation Program
100,000.00
97,857.15
On-going
27. Amortization of loans used to finance development projects cited in
JMC 2017-1 subject to the 20 per cent debt service cap prescribed
under Sec. 324(b) of RA 7160 (LISCOP)
500,000.00
476,243.83
Completed
21.
Cultural Affairs and Promotion (Turumba Festival, Foundation Day,
Adonal Day, Town Fiesta, and other Cultural Traditions)
III Environmental Management
28. Reforestation and urban greening
100,000.00
29.
1,000,000.00
1,000,000.00
On-going
6,512,407.98
17
Purchase of garbage trucks and other equipment for environmental
management and protection purposes; other SWM
30. Implementaton of flood erosion control projects such as
construction and rehabilitation of drainage systems, desilting of
rivers and declogging of canals
200,000.00
31. Other environmental management projects that promote air and
water quality, as well as productivity of coastal or freshwater
habitat, agricultural and forest lands, such as, but not limited to
treatment of wastewater for concervation/re-use purposes and
installation of air pollution devices
700,000.00
Total
P
13,606,573.80 P
60