Republic of the Philippines
COMMISSION ON AUDIT
Regional Office No. XI
LGS-B, Province of Davao del Norte
Office of the Audit Team Leader
Team R11-06-Municipality of Carmen
February 23, 2024
AUDIT MEMORANDUM (AM) NO. 23-002
For CY 2023
THRUST AREAS:
1. Initial recognition and measurement as at reporting date of Foreign Currency
transactions.
2. Recognition of exchange differences for the period in accumulated surplus or
deficit account.
AUDIT OBJECTIVES:
1. To determine the correctness of rates used in the recognition and measurement at
reporting date for foreign currency transactions.
2. To determine if all the exchange differences for the period were recognized in
accumulated surplus or deficit account.
3. To determine if dormant foreign currency account were closed.
BACKGROUND:
1. COA Circular No. 94-003 dated January 27, 1994 provides the Accounting
guidelines and procedures for foreign currency transactions.
2. COA Circular No. 97-001 dated February 5, 1997 provides the guidelines on the
Proper Disposition/Closure of Dormant Funds and/or Accounts of National
Government Agencies.
RESULT OF AUDIT:
1. Review of the year-end financial statements showed that agency has neither Cash in
Bank-Foreign Currency, Savings Account nor any foreign currency transactions.
2. The agency does not have any dormant Cash in bank-foreign currency, saving
accounts.
AM No. 23-001
LGU CARMEN_Cash in Bank - Foreign Currency, Saving Account
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3. Considering the foregoing, we noted no reportable audit issue/s on the above
thrust area.
Prepared by:
Reviewed by:
JOSEPHINE A. YAP
State Auditor IV
Audit Team Leader
THELMA V. PULMA
State Auditor V
Supervising Auditor
AM No. 23-001
LGU CARMEN_Cash in Bank - Foreign Currency, Saving Account
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