Audit Report Summary for Talisay City

Copy furnished:
Sangguniang Panlungsod
The Regional Director, DILG, Region VII
The Regional Director, DBM, Region VII
The Regional Director, BLGF, Region VII
Republic of the Philippines

COMMISSION ON AUDIT
Regional Office No. VII
Cebu City
May 27, 2013

Sabiniano G. Cabatuan
Regional Director
Commission on Audit
Cebu City
Sir:
In compliance with Section 2, Article IX-D of the Philippine Constitution and pertinent
sections of Presidential Decree No. 1445, we conducted a Financial and Compliance Audit
on the accounts and operations of the City of Talisay, Province of Cebu for the year ended,
December 31, 2012.
The audit was conducted to ascertain the propriety of financial transactions and compliance
of the agency to prescribed rules and regulations. It was also made to ascertain the accuracy
of financial records and reports, as well as the fairness of the presentation of the financial
statements. The audit also includes assessing whether the financial statements are presented
in conformity with generally accepted accounting principles applied in a consistent basis.
We conducted our audit in accordance with Generally Accepted Auditing Standards (GAAS).
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement/s. Our audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. The audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for the results
of audit.
Our attached report consist of four (4) parts, Part I contains the Audit Certificate, Statement
of Management Responsibility for Financial Statements, Audited Consolidated Financial
Statements and Notes to Consolidated Financial Statements. Part II presents the detailed
findings and recommendations that were discussed with concerned officials and staff. Part
III presents the Status of Implementation of Prior Years Recommendations and Part IV is the
Annexes.
As discussed in Parts II and III hereof, the financial statements contain material
misstatements, such as:
1. Collections out of various school fees of at least P10,553,270.00 were not issued with
appropriate official receipts as public funds and were not remitted to the City
Treasurers Office nor recorded in the books;
2. The unexpended/unobligated balance of the local calamity fund for the year totaling
P3,781,830.97 was not transferred to the Special Trust Fund under the account Trust
Liabilities-Disaster Risk Reduction and Management Code in the trust fund books;
3. Receivables out of the funds transferred to local government units, NGOs/POs and
national agencies totaling P1,424,837.00 remained outstanding at the end of the year
due to the failure of the City to put in place the necessary controls for the immediate
submission of liquidation reports;
4. Unrecorded disbursements totaling P1,087,945.89 due to failure of the City Treasurer
to submit vouchers and supporting documents comprising of current and prior years
transactions;
5. Various reconciling items totaling P489,779.00 in the bank reconciliation statement
since 2004 which are left unadjusted;
6. Failure to conduct reconciliation of Accounting and Property Records and physical
inventory of PPE accounts of P1,096,068,659.31;
7. Net unreconciled difference of P18,396,640.98 between the balance per books and
inventory reports;
8. Understatement of land and accounts payable amounting to P25,383,043.29
representing unpaid balance of lots purchased on installment basis which were not
booked up.
In our opinion, because of the effects of the matters discussed in the preceding paragraphs,
the financial statements do not present fairly, in all material respects, the financial position of
the City Government of Talisay as at December 31, 2012, and the results of its operations and
its cash flows for the year then ended in conformity with generally accepted accounting
principles.

COMMISSION ON AUDIT
Office of the Auditor
City Government of Talisay
Talisay City
May 27, 2013

Sabiniano G. Cabatuan
Regional Director
Commission on Audit
Cebu City
Thru: Delia E. Monte de Ramos
Supervising Auditor Local
Commission on Audit
Cebu City
Sir:
In compliance with Section 2, Article IX-D of the Philippine Constitution and pertinent
sections of Presidential Decree No. 1445, we conducted a Financial and Compliance Audit
on the accounts and operations of the City of Talisay, Province of Cebu for the year ended,
December 31, 2012.
The audit was conducted to ascertain the propriety of financial transactions and compliance
of the agency to prescribed rules and regulations. It was also made to ascertain the accuracy
of financial records and reports, as well as the fairness of the presentation of the financial
statements. The audit also includes assessing whether the financial statements are presented
in conformity with generally accepted accounting principles applied on a consistent basis.
We conducted our audit in accordance with Generally Accepted Auditing Standards (GAAS).
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement/s. Our audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. The audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for the results
of audit.
Our attached report consists of four (4) parts, Part I contains the Audit Certificate, Statement
of Management Responsibility for Financial Statements, Audited Consolidated Financial
Statements and Notes to Consolidated Financial Statements. Part II presents the detailed
findings and recommendations that were discussed with concerned officials and staff. Part
III presents the Status of Implementation of Prior Years Recommendations and Part IV is the
Annexes.
transactions;
6. Failure to conduct reconciliation of Accounting and Property Records and physical
inventory of PPE accounts of P1,096,068,659.31
inventory reports;
booked up.
principles.
Very truly yours,
EXECUTIVE SUMMARY
Introduction
The City of Talisay was created thru Republic Act No. 8978 of 2000, otherwise
known as the Charter of Talisay City. It is a third class city and a component city of the
Province of Cebu. It serves as an intermediary to the south of Metro Cebu and gateway to
southern and western towns of the province.
Pursuant to RA 7160, known as the Local Code of 1991, the city, like the other
government units, enjoys total independence in managing, deciding and planning its own
administrative, fiscal and development affairs in conformity with the national governments
thrust for sustainable social economic growth.
To accelerate the social and economic development of the city, infrastructure and
other worthy accomplishments for the year 2012 is shown in Annex BB.
A. HIGHLIGHTS OF FINANCIAL OPERATION
A.1. Sources of Funds
Total income realized during the year amounted to P545,545,092.84, an increase of
P54,746,342.37 or 11.15% compared to that of the preceding year of P490,798,750.47. A
comparative schedule is shown below:
INCOME
Internal Revenue
Allotment
Local Income
Permits and Licenses
Service Income
Business Income
Other Income
TOTAL
2012
294,375,412.00
2011
334,151,786.00
Increase/
(Decrease)
(39,776,374)
%
(11.90)
141,093,906.54
12,542,440.65
2,084,858.00
27,131,487.60
68,316,988.05
545,545,092.84
112,626,787.56
8,290,569.09
981,690.00
23,760,918.02
10,986,999.80
490,798,750.47
28,467,118.98
4,251,871.56
1,103,168.00
3,370,569.58
57,329,988.25
54,746,342.37
25.28
51.29
112.37
14.19
521.28
11.15
A.2. Appropriations
For calendar year 2012, total appropriation of the city amounted to P555,570,352.35
compared with last years P523,026,164.21 showing an increase of P32,544,188.14 or
17.72%. A comparative fund distribution is shown as follows:
FUNDS
521,591,347.95
492,644,725.27
Increase/
(Decrease)
28,946,622.68
33,979,004.40
30,381,438.94
3,597,565.46
11.84
555,570,352.35
523,026,164.21
32,544,188.14
17.72
2012
General Fund
SEF
TOTAL
2011
%
5.88
A. 3. Obligations
During the year, the city incurred an obligation of P515,134,237.28, an increase of
P24,454,228.83 or 13.76% compared to that of the preceding year of P490,680,008.45, See
Annex AA for details. A comparative schedule is shown below:
483,550,945.09
461,713,585.64
Increase/
(Decrease)
21,837,359.45
31,583,702.19
28,966,422.81
2,617,279.38
9.03
515,134,647.28
490,680,008.45
24,454,638.83
13.76
FUNDS
General Fund
2012
SEF
TOTAL
2011
%
4.73
A.4. Financial Ratios

Liquidity
Formula
2012
2011
Current Assets
Ratio
Current Assets/Current
Liabilities
1.68:1
2.18:1
Quick (Acid
Test) Ratio
Current Assets less

Inventory/Current Liabilities
1.51:1
1.97:1
Net Working
Capital
Current Assets less Current

Liabilities
86,237,733.99
117,887,677.32
B. SCOPE OF AUDIT
A financial and compliance audit was conducted on the accounts and operations of
the City Government of Talisay for the year ended December 31, 2012. Our audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. The audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation.
ii
C. AUDITORS OPINION ON THE FINANCIAL STATEMENTS

As discussed in Part II hereof, the Auditor rendered an adverse opinion on the fairness
of the presentation of the financial statements of the City of Talisay Government in view of
the deficiencies observed in the accounts and non-compliance to rules and regulations as
stated in the Independent Auditors Report and discussed in detail in Parts II and II of the
report.
D. SIGNIFICANT FINDINGS AND RECOMMENDATIONS
FINANCIAL AND COMPLIANCE AUDIT
1.
Collections out of various school fees of at least P10,553,270.00 were not issued with
appropriate official receipts as public funds, and were not remitted to the City
Treasurer nor recorded in the books of the agency in violation to Sections 15 and 30
of the NGAS Manual for LGUs, Volume I, Sections 63, 68 and 69 of PD 1445 and
Section 307 of RA 7160, thus exposing government funds to risks against loss or
misuse thru theft or malversation.
We recommend that Management:
a. require the College President to account for at least P10,553,270.00 worth of
collections comprising of different fees collected by TCC and those of
undetermined amount such as examination and insurance fees from 2004 to 2008,
graduation fee from SY 2008-2009 and 2010-2011, masteral courses fee from SY
2010 to 2011 and such other fees which TCC collected from students but not
issued with the required official receipts;
b. direct the Talisay City College to immediately stop collecting school fees without
issuing the required official receipts and prior approval from the Board of
Trustees;
c. instruct the City Treasurer to assign a regular collecting officer to TCC to collect
the above mentioned fees from students and issue the appropriate official receipts
in acknowledgement thereof;
d. conduct impartial investigation and institute appropriate sanctions against those
erring TCC personnel;
e. direct the College President to explain in writing relative to the irregularities
committed at TCC;
f. require the TCC to follow strictly the disbursement procedures and stop the
practice of using collections in payment thereof.
iii
2.
The contract of service between Talisay City College President and the City of
Talisay covering January 1 December 31, 2012 is deemed prejudicial to the interest
of the City considering that the College President who is required to render full time
service is also under contract with another school contrary to Section 19, Rule VII of
CHED Memorandum Order No. 4, series of 2007 and Talisay City Ordinance No.
2008-11 approved on December 2, 2008.
a. direct Dr. Ramos to render full time service in conformity with the CHED
Memorandum Order No. 4 and Talisay City Ordinance No. 2008-11;
a. observe the proper format and insertions of the required conditions or provisions
in the contract such as the rendition of full time service pursuant to CHED
b. instruct Dr. Ramos to explain in writing relative to his apparent failure to render
full time service and direct him to refund the amount equivalent to his salary
during the time he reported for duty at the Lapulapu City College. If possible,
coordinate with the City of Lapulapu for the appropriate records showing therein
the dates when he reported thereat.
3.
Hiring of teaching and non-teaching personnel by the College President at Talisay

City College as well as the fixing and adjusting of their salaries were done without
the necessary approval and confirmation from the Board of Trustees in contrary to
Section 4(g & h) of Republic Act 8292, otherwise known as the Higher Education
Modernization Act of 1997, Section 4(g) of SP Ordinance No. 2005-15 and Section
17 (i & j) of CHED Memorandum Order No. 04, series of 2007, thus resulting in the
irregular payment of government funds.
a. direct the College President to explain why the hiring of teaching and nonteaching personnel as well as the fixing and adjusting of their salaries were done
without the approval/confirmation of Board of Trustees;
b. henceforth, direct the College President to abide by the laws, rules and regulations
in the hiring of faculty members and staff to avoid disallowances and/or
suspensions in the future.
4.
Of the eighty-nine (89) teaching and non-teaching personnel assigned at Talisay City
College, only fifty-nine (59) are covered with service contracts while the remaining
thirty (30) are without service contracts, thereby preventing the immediate review
thereof and the timely action of any defect or deficiency that maybe noted thereon in
violation of Section 4 (6) of Presidential Decree (PD) 1445.
iv

a. direct the College President and/or personnel-in-charge for the immediate
submission of the thirty (30) missing service contracts to facilitate the review and
timely action of any defects that maybe noted;
b. stop the practice of processing claims without complete supporting documents to
avoid suspensions and/or disallowances in the future;
c. henceforth, advise the personnel-in-charge to submit copies of contracts to the
Auditor within five days from its issuance in compliance with COA Circular No.
2009-001.
5.
The City paid P3,390,200.03 to the wrong claimants for a portion of lot no. 3106
where the new Talisay City Plaza was constructed in 2012 due to the failure of some
concerned City officials to hid the warning pose by the rightful owners on subject lot
prior to payment. As a result, the City government stands to lose P3,390,200.03 worth
of funds thru wastage if no immediate action is taken to fast track the recovery of the
amount paid thereof.
a. demand from those parties where payments were made to refund the amount paid
to them and/or from City officials responsible thereto because as officials of a
government agency they are responsible that government resources are managed,
expended or utilized in accordance with law and regulations and safeguarded
against loss or wastage through illegal or improper disposition, with a view to
ensuring efficiency, economy and effectiveness in the operations of government;
b. refrain from paying claims for lot acquisitions affected by the implementation of
the Citys development projects if subject properties are involved in ownership
issues unless the subject concerns are properly addressed ensuring that the interest
of the government is fully protected;
c. conduct impartial investigation and institute appropriate sanctions against those
responsible for the irregular act.
6.
Disbursements totaling P5,866,930.00 were made for repair of motor vehicles and
heavy equipments supported with spurious/falsified canvass papers, which gave
undue advantage to the contract to the prejudice of the interest of the government.
a. conduct an impartial investigation and institute appropriate sanctions against
those personnel found responsible in the commission of such unlawful act;
b. direct the personnel concerned found responsible thereto to immediately refund

the amount of P5,866,930.00 otherwise subject disbursements will be disallowed
and/or suspended in audit;
c. remind the TWG to scrutinize and evaluate the canvass documents/bid quotations
carefully to promote fairness and transparency in the bidding process and obtain
reasonable bid offers advantageous to the government thus avoiding a similar
situation in the future.
7.
Three (3) completed infrastructure projects with contract amount of P6,914,990.08

were found deficient by a total of 29.38% in workmanship due to failure of the city
officials to exercise due care and diligence in the performance of their functions, thus
resulting in the overpayment of the contractor by P726,743.17 in contrary to Section
88 of PD 1445.
a. henceforth, direct those who are in-charge of the inspection and evaluation of
infrastructure projects to exercise due care and diligence in the performance of
their functions to avoid paying deficient contracts;
b. coordinate with Tuanson Construction for the completion of the unfinished
projects, otherwise, if no agreement is reached, cause the withholding of said
amount from its remaining collectibles until such time that the subject issue is
fully settled.
8.
Various disbursements for consultancy fees totaling P615,000.00 were charged

against the Special Education Fund contrary to the provisions of DECS, DBM and
DILG Joint Circular Nos. 01 s. 1998, 01-A s. 2000, 01-B s. 2001, and Section 100(c)
of the Local Government Code of 1991, resulting in the irregular disbursement of
government funds.
We recommend that Management refrain from using the SEF outside the scope for
which this fund was established and observe the proper utilization thereof pursuant to
the provisions of DECS, DBM and DILG Joint Circular Nos. 1, series of 1998, 01-A
series of 2000 and 01-B series of 2001 and Section 100(c) of the Local Government
Code of 1991 to attain the governments goal in the operation and maintenance of
elementary and secondary schools.
9.
The City charged P7,016,576.08 for asphalting and drainage system, repair of motor
vehicles, consultancy fees and honorarium of job order workers against the five
percent (5%) local calamity fund contrary to DILG Memorandum Circular No. 201273 dated April 17, 2012 on the utilization of the Local Disaster Risk Reduction and
Management Fund (LDRRMF), Republic Act No. 10121 and Rule 18 of its
Implementing Rules and Regulations.
vi

a. direct the officials concerned to refund P7,016,576.08 and hold all those who
authorized the payment as jointly and severally liable of the amount disbursed;
b. henceforth, observe the proper utilization of the 5% calamity fund pursuant to the
pertinent provisions of the DILG Memorandum Circular No. 2012-73, RA 10121,
and Section 1, Rule 18 of its implementing rules and regulations.
10.
The unexpended/unobligated balance of the local calamity fund for the year totaling
P3,781,830.97 was not transferred to the Special Trust fund under the account Trust
Liabilities Disaster Risk Reduction and Management (Code 438) in the trust fund
books in violation of Section 21 of Republic Act (RA) 10121 otherwise known as the
Philippine Disaster Risk Reduction and Management Act (PDRRMA) of 2010 and
COA Circular No. 2012-002 dated September 12, 2012.
We recommend that the City Accountant transfer the unutilized MOOE balance of the
calamity fund amounting to P3,781,830.97 to the Special Trust Fund under the
account Trust Liabilities DRRM (Code 438) in the Trust Fund books to be used
solely for 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 saggunian.
11.
The City failed to monitor submission of liquidation reports on fund transfers to

Local Government Units, National Peoples Organizations/Peoples Organizations,
and National Government Units resulting to their accumulation to P1,424,837.00.
Expenditures that may have been paid by implementing agencies for various projects
during CY 2012 and prior years were not recorded in the books of the City.
We recommend that the City Government make concrete efforts by sending demand
letters to LGUs, NGOs/POs and NGAs for the immediate settlement of their
outstanding balances and improve the present monitoring and control measures on the
liquidation of fund releases. For future grants of financial assistance to LGUs,
NGOs/POs and NGAs, strict adherence to COA Circular Nos. 2007-001 and 94-013
is enjoined to ensure prompt liquidation thereof.
12.
The non-recording of disbursements totalingP16,863,806.61 in the books of accounts,

due to the failure of the City Treasurer to submit vouchers and supporting documents
comprising of current and prior years transactions to the Accounting Office, may
result in the misstatement of financial statements of the City and prevent concerned
parties to review the validity, legality, and propriety of subject disbursements, in
violation of Section 4 (6) of Presidential Decree (PD) 1445.
vii

a. instruct the City Treasurer to facilitate the retrieval of vouchers and their
supporting documents from the concerned personnel and submit them
immediately to the Accounting office for appropriate recording;
b. henceforth, direct the City Treasurer to institute effective measures to streamline
the releasing of payment or checks to avoid loss of disbursement vouchers and
supporting documents;
c. impose appropriate sanctions against those responsible for the loss of
disbursement vouchers and supporting documents and those officials who are
signatories to the check will be held jointly and severally liable.
13.
The distribution of City Health Cards to indigent beneficiaries who are also Philhealth
members resulted in the double grant thereof and incurrence of unpaid obligations to
Talisay District Hospital amounting to P7,026,980.75 as of December 31, 2012.
We recommend that Management direct the Budget Officer to include in its yearly
appropriation the amount of medicine and hospital bills under its Health Card
Program in conformity with the aforecited regulation. Moreso, instruct the Social
Welfare Officer to see to it that all the indigent beneficiaries should first avail of
Philhealth benefits before they are given Health cards to reduce expenditures on this
program. Further, a monitoring system should be set up to regulate distribution of the
same health cards to ensure that expenditures thereof would not exceed the annual
budget appropriation.
14.
Various reconciling items totaling P489,779.00 in the bank reconciliation statement

since 2004 are still carried in the report and left unadjusted as of December 31, 2012
due to inability of management to determine the nature of transactions and secure
proper documentation as basis for adjustments in agency books, contrary to Section
58 and 74 of PD 1445.
We recommend that management direct the Accounting Section to secure proper
documentation so that appropriate adjustments can be taken up in the agency books.
15.
The reliability of the balances of the Property, Plant and Equipment accounts totaling
P1,096,068,659.31 could not be ascertained due to a) inability of management to
conduct physical inventory count; and b) non-preparation/maintenance of Property,
Plant and Equipment Ledger Card by the Accounting Section and Property Cards by
the General Services Office.
We recommend that Management implement the following corrective measures to
ensure better internal control thereat and to present the correct financial condition of
the PPE accounts:
viii
a. direct the Inventory Team to facilitate the conduct and submission of physical
inventory count and reconcile the report with the records of the Accounting and
GSO Sections to determine their existence, status/conditions and whereabouts of
the assets;
b. advise the inventory team to use property tags during the count to facilitate
identification and location of the PPE;
c. advise the inventory team to submit a report for whatever assets found in station
during the count but not recorded per books so that these could be taken up in the
agency books for control purposes and pinpoint accountability in case of loss;
d. direct the GSO and Accountant to maintain Property Cards and Equipment Ledger
Cards, respectively, to ensure the accuracy and reliability of the property and
accounting records;
e. provide adequate information on the inventory reports such as the model, serial
number, cost, conditions and property number to facilitate identification during
the count;
f. require clearance from retired/resigned officials and employees to clear them of
their property accountability and cancel the corresponding Acknowledgement
Receipt for Equipment (ARE) for the returned items.
16.
The total balance of Inventory Accounts of P21,696,313.76 is unreliable because of a)

net unreconciled difference of P18,396,640.98 between the balance per books and
inventory reports; b) unrecorded issuances caused by the non-preparation of
Summary of Supplies and Materials Issued thereby overstating the inventory accounts
and understating the related expenses; c) absence of supplies ledger cards by the
Accounting Section and stock cards by the General Services Office.
a. instruct the Accountant and General Services Officer to reconcile the accounting
and property records and any discrepancy be immediately verified and adjusted to
reflect the accurate value of inventories;
b. require the General Services Officer/designated custodians to prepare the SSMI
for issued inventories to end-users based on duly approved Requisition and Issue
Slips and submit the same to the Accountant for recording in the books;
c. direct the Accountant and General Services Officer to prepare the Supplies Ledger
Cards and Stock Cards, respectively, in compliance with Section 114 of the
NGAS Manual, Volume 1.
ix
17.
Claims for daily wage honorarium of Job Order Contract Employees who are
assigned in the different offices of the City were not supported with proper individual
accomplishment reports but only signed accomplishment reports by heads of offices
thus the validity and propriety of disbursements may prove doubtful in violation of
Section 4(6) of Presidential Decree (PD) 1445.
a. require the head of the department where the job orders actually rendered services
to explain why they signed the accomplishment reports which entries therein
differs from the actual accomplishment actually performed by the JOs;
b. direct the Accountant to refrain from processing daily wage claims and/or
honorarium of Job Orders without individual accomplishment reports duly
verified by the head of office where they are assigned and reporting for duty.
E. STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT

RECOMMENDATIONS
Of the twenty five (25) audit recommendations embodied in the 2011 Annual Audit
Report, nine (9) were fully implemented, seven (7) were partially implemented and nine (9)
were not implemented.
Table of Contents
Part I
Financial Statements
Part II
Page No.
Audit Certificate
Statement of Management of Responsibility
Financial Statement
Notes to Financial Statement
Detailed Findings and Recommendations
Financial and Compliance Audit

Part III
Part IV
1
3
4
17
Status of Implementation by the Auditee of Prior

Years Audit Recommendations
Annexes
22
65
79

COMMISSION ON AUDIT
OFFICE OF THE REGIONAL DIRECTOR
REGIONAL OFFICE NO. VII
COA Compound, Cor. V. Sotto-M.J. Cuenco Streets
Cebu City
AUDIT CERTIFICATE
Honorable Socrates C. Fernandez

City Mayor
City of Talisay
Province of Cebu
Pursuant to Section 2, Article IX-D of the Philippine Constitution and pertinent provisions of
Presidential Decree No. 1445, we have audited the accompanying Balance Sheet of the City
of Talisay as of December 31, 2012 and the related Statement of Income and Expenses and
Cash Flows for the year then ended. These financial statements are the responsibility of the
Talisay Citys Management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with laws, COA and INTOSAI standards, and
Generally Accepted Auditing Standards (GAAS). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. Our audit included examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. It also included assessing
the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides
reasonable basis for our opinion.
1
transactions;
6. Failure between General Services Office and Accounting Sections to conduct
reconciliation and physical inventory of PPE accounts of P1,096,068,659.31
inventory reports;
booked up.
principles.
COMMISSION ON AUDIT
May 27, 2013
2012
2011
2012
2011
2012
10
2011
2012
11
2011
2012
2012
12
2011
2011
Other Maintenance and Operating Expenses

TOTAL MAINTENANCE AND OTHER OPERATING EXPENSES
Financial Expenses
Documentary Stamps Expenses
Interest Expenses
Other Financial Charges
TOTAL FINANCIAL EXPENSES
117,014,891.89
117,014,891.89
307,386,359.76
106,701,905.80
106,701,905.80
273,826,623.30
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL EXPENSES
455,642,936.46
413,309,736.55
NET INCOME / ( DEFICIT )
89,902,156.38
77,489,013.92
Certified Correct:
13
2012
14
2011
2012
15
2011
Cash Outflows:
Investments in Securities
0.00
0.00
110,288,333.23
124,540,487.82
Payment for purchase of Other Assets
0.00
0.00
Payment of A/P for CIP and purchase of PPE
0.00
0.00
Payment of progress billing of contractors for Agency Asset
0.00
0.00
Payment of progress billing of contractors for PI and RP
0.00
0.00
Purchase/Fabrication/Construction of PPE, PI and RP
Advances to procurement service for purchase of PPE

Refund of Retention Fees to Contractors
Payment of advances to Contractors
Payment for Right-of-Way
Transfer of Funds for implementation of

Capital/Infrastructure Project
Grant of Loans to LGUs, NGOs/Pos and Other Entities
Total Cash Outflows
Net Cash from Investing Activities
0.00
0.00
483,205.15
3,819,353.32
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
300,000.00
0.00
111,071,538.38
128,359,841.14
(111,071,538.38)
(128,359,841.14)
Cash Flows from Financing Activities:

Cash Inflows:
Proceeds from Loan
Proceeds from Bond Flotation
Total Cash Inflows
0.00
0.00
0.00
0.00
0.00
0.00
Cash Outflows:
Payment for Sinking Fund
0.00
0.00
2,311,011.80
2,311,010.80
Other Long Term Liabilities
0.00
0.00
Payment for Financial Expenses
0.00
0.00
Payment of Mortgage/Bonds/Loans Payable and
Redemption of Bonds and Other Securities

Total Cash Outflows
Net Cash from Financing Activities
0.00
0.00
2,311,011.80
2,311,010.80
(2,311,011.80)
(2,311,010.80)
Net Increase(Decrease) in Cash and Cash Equivalents
(17,073,880.59)
22,857,913.63
Cash and Cash Equivalents, Beginning of the Period
105,694,449.93
82,836,536.30
88,620,569.34
105,694,449.93
Cash and Cash Equivalents, End of the Period
Certified Correct:
16

Province of Cebu
CITY
OF
TALISAY
OFFICE OF THE CITY ACCOUNTANT

__________________________________________________________________________
___________________________________________________________________________
Tel: 273-5666
Cell No. 09277974136
NOTES TO FINANCIAL STATEMENTS

CONSOLIDATED
2012
(With Comparative Figures for 2011)
AGENCY PROFILE
Talisay City, classified as third class city, whose financial statements are being
presented was created under RA 8979 of 2000. It is a component city of the Province of Cebu
in Central Visayas and forms part of the Metropolitan Cebu area. It serves as an intermediary
to the south of Metro Cebu and gate away to southern and western towns of the province. It
has ten kilometers distance from Cebu City.
Out of the reported total income for the year, 24% represents income generated from
local sources while 76% from Internal Revenue Allotment. For the total expenditures, 21%
represents personal services, 46% for MOOE while the remaining 33% represents capital
outlay expenses.
BASIS OF FINANCIAL STATEMENTS PRESENTATION
The statements presented have been prepared in accordance with generally accepted
accounting principles and standards. Accounts were reclassified to conform with the new
chart of accounts prescribed under COA Circular #2004-008 dated September 20, 2004.
Inclusion in the consolidated financial statements of transactions of the three funds
General Fund, Special Education and Trust Funds. The General Fund consists of transactions
of the General Fund Proper and special accounts like markets, slaughterhouse, waterworks,
Talisay City College (TCC) and 20% development fund.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
17
The agency uses accrual basis of accounting. All expenses are recognized when
incurred and reported in the financial statements in the period to which they relate.
Depreciation expense represents assets acquired from 2002 up to the present in conformity
with the new government accounting system (NGAS) existence. It is recognized a month
after its acquisition.
All materials, supplies and services delivered and rendered were recorded as expense
although not yet paid. Likewise basis of measurement in all items of supplies inventories and
property, plant and equipment were the acquisition costs.
CORRECTION OF FUNDAMENTAL ERRORS
The agency had also discovered some errors that affect the financial statements. Such
errors were recorded in the account Prior Years Adjustments broken down into the
following:
BREAKDOWN/COMPOSITION
VARIOUS ACCOUNTS
OF,
AND
18
EXPLANATORY
NOTES
ON
19
c.) Inventory Account consists of office supplies, accountable forms not yet
considered as expense pending GSOs inventory report not yet received during
closing of the book
d.) Property, Plant and Equipment acquired from 2002 until the present are carried in
consideration of depreciation expense pursuant to NGAS existence.
For assets under construction, all related expenses incurred during the construction
of the project are considered asset and those incurred after the construction are
charged against the maintenance and operating cost.
20
e.) Payable Accounts

Payables accounts are recognized and recorded in the book of accounts only upon
acceptance of goods and services rendered to the agency. Acct. 412 represents
BIR remittance, 413 GSIS remittance, Pag-ibig remittance, Philhealth
remittance, 411 National remittance. All remittance will be remitted January,
2013. Same with account 424 represents accounts to be transferred to SEF & Trust
Fund in the amount of Php 26,743,880.31. Other long-term liabilities represents
loan payable of Jaican loan for old Tabunoc Public Market thru MCDP Php
1,155,505.41 including interest which will be fully paid on 2013.
SEF Acct 418 represents provincial aid received for roof replacement. Acct.
424 represents GF collection deposited to SEF acct and release of cash bond to
contractor paid by TF. Acct. 426 represents cash bond, warranty retention and
performance bond from contractors and suppliers. Acct 439 represents employees
CFI loan payments which were deducted from payroll.
TF Acct. 418 represents funds held in trust. Acct. 424 represents interest
earned from bank deposits amounting to Php 301,014.92; payments made by GF
amounting to Php 421,479.50; GF collection received and deposited in TF
amounting to Php 15,953.82 and SEF collection received and deposited in TF
amounting to Php504,000.00. Acct. 426 represents warranty retention and cash
bond from suppliers in the amount of Php 3,822,297.85. Acct. 427 represents
Performance/Bidders/Bail Bonds Payable in the amount of Php 2,366,986.87
which will be paid when due.
f.) Deferred Credits
Acct. 452 Deferred special tax income represents unrealized income in 2012.
Acct. 455 Other deferred credits represents advanced special education tax
payments received for years 2013 to 2017.
GOVERNMENT EQUITY
21
PART II - DETAILED FINDINGS AND RECOMMENDATIONS

Positive Audit Observations
In the audit of the CY 2012 transactions, we noted some favorable audit
observations which are worth mentioning, as follows:
22
1. Talisay City government is again in the headline for placing two (2) Talisay City
College (TCC) graduates in the 10th placed in the elementary and secondary levels in
the March 2013 Licensure Examination for Teachers. This is the fifth time in a row
that TCC placed in the top list.
2. The City of Talisay made remarkable achievement as a Child Friendly City, after
having won the 2012 Presidential Award in the regional level. Of the four component
cities nationwide who won the regional award, only Talisay City made it as finalist in
the national level.
3. The Citys chief executive, Mayor Socrates C. Fernandez, brought honor to the City
for his exemplary performance in the field of social welfare and development. For
this, he was named Outstanding City Mayor and received the Hall of Fame-Gawad
Parangal Award in Legaspi City on April 17, 2013, as conferred by the Association of
Local Social Welfare and Development Officers of the Philippines (ALSWDOP).
4. The year-end financial reports of the City for CY 2012 were submitted to COA on
January 30, 2013 or within the reglementary period prescribed under COA Circular
No. 2010-001 dated March 2, 2010 thus, facilitated the review of the accounts.
Notwithstanding the above-mentioned favorable audit observations, there were some
deficiencies noted in the course of the audit which need corrective actions as follows:
FINANCIAL AND COMPLIANCE AUDIT
5. Collections out of various school fees of at least P10,553,270.00 were not issued
with appropriate official receipts as public funds, and were not remitted to the City
Treasurer nor recorded in the books of the agency in violation to Sections 15 and 30
of the NGAS Manual for LGUs, Volume I, Sections 63, 68 and 69 of PD 1445 and
Section 307 of RA 7160, thus exposing government funds to risks of misuse or loss
thru theft or malversation.
Section 15 of the NGAS Manual for LGUs, Volume I, states that officers of the local
government authorized to receive and collect monies arising from taxes, revenue or receipts of
any kind shall remit the full amount received and collected to the treasury of such local
government unit which shall be credited to the particular account or accounts to which the
monies in question belong.
Section 30 of the same manual and volume provides that collectors/tellers shall issue a
receipt to acknowledge collections made. The receipt maybe in the form of pre-numbered
receipts, or cash tickets and the like.
23
Section 63 of PD 1445 provides that except as may otherwise be specifically provided

by law or competent authority all money and property officially received by a public officer in
any capacity or upon any occasion must be accounted for as government funds and
government property. Government property shall be taken up in the books of the agency
concerned at acquisition cost or an appraised value.
Section 68 of the same decree provides that no payment of any nature shall be received
by a collecting officer without immediately issuing an official receipt in acknowledgment
thereof. The receipt may be in the form of postage, internal revenue or documentary stamps
and the like, or officially numbered receipts, subject to proper custody, accountability, and
audit.
Section 69 of the above mentioned decree directs public officers authorized to receive
and collect moneys arising from taxes, revenues, or receipts of any kind shall remit or deposit
intact the full amounts so received and collected by them to the treasury of the agency
concerned and credited to the particular accounts to which the said moneys belong.
Section 307 of RA 7160 states that officers of the local government authorized to
receive and collect monies arising from taxes, revenues, or receipts of any kind shall remit the
full amount received and collected to the treasury of such local government unit which shall
be credited to the particular account or accounts to which the monies in question properly
belong.
Inquiry disclosed that the Talisay City College (TCC) headed by its President Dr.
Tomas L. Ramos started its operation in the opening of school year (SY) 2004-2005.Except
for the tuition fees of undergraduate students, the school had been collecting various school
fees which were not remitted to the City Treasurers Office (CTO).It had also made
disbursements out of these collections, without approval from its Board of Trustees.
The table hereunder shows the various types of fees except the tuition fees of those
enrolled in the under graduate school that Talisay City College collects from its students:
Name of Fee
Entrance Examination
Fee
Insurance Fee
Developmental Fee
Assessment Fee (NC II)
Review Fee
Tuition Fee
Nature/Purpose
Administered to incoming first year
students
Accident insurance coverage collected
from all college students
Payment to supplier for acquisition of
computers and local networking
Administered to incoming second year
IT students
Collected from reviewees of the
Licensure Examination for Teachers
(LET)
Collected from students taking up
Diploma in Professional Education
(DPE), Master in Education (MAEd),
and Master in Public Administration
24
Amount
300.00 per student
100.00 per semester
70.00 x 4 months/semester
550.00/student
3,500.00/reviewee
DPE-P3,000.00/semester
Masteral-P3,000.00/
trimester
(MPA)
Graduation Fee
Transcript of Records
P1,000-P1,500
P50.00 per page
Records further disclosed that the faculty members were assigned by Dr. Ramos to act
as collecting officers of the above mentioned subject fees without issuing the appropriate
official receipts in acknowledgement thereof. The amount collected was not remitted to the
City Treasury by the collecting officers due to the apparent failure of Dr. Ramos to instruct his
designated collecting officers to do so. Moreover, the collections were not recorded in the
books of the agency. This violates Sections 15 and 30 of NGAS Manual for LGUs, Volume I,
Sections 63, 68 and 69 of PD 1445, and Section 307 of RA 7160.
In January 2012, the CTO assigned three (3) personnel to the TCC to receive payment
of school fees but still, notwithstanding the presence of these City Collectors, TCC continued
to collect from its students the fees and did not remit them to the City.
It is also stressed that TCC failed to provide COA with the required list of students and
other data needed in the conduct of audit of the said City College despite of two letter requests
dated March 11 and 27, 2013 addressed to Dr. Ramos.
Based on the list of students of the Talisay City College from school years 2008-2009
to 2012-2013provided by Commission on Higher Education (CHED) and TCC website, the
City could have collected at least P10,553,270.00 as entrance/examination fees, insurance
membership fee, developmental fee, NC II TESDA Assessment fee, LET Review fee,
DPE/MA.Ed/MPA Tuition fee, graduation fee and payment for transcript of records, based on
the rate as provided on the above table. A summary of these collections are shown below,
while details of each school fee are shown as.
Name of Fee
Entrance/Examination Fee
Insurance Membership Fee
Developmental Fee
TESDA Assessment Fee-NC II
Review LET
Tuition Fees-DPE, MA.Ed., MPA
Graduation Fee
Transcript of Records
TOTAL
Period Covered
2008 to 2012
2008 to 2012
2008 to 2012
2008 to 2012
2008 to 2012
2008 to 2012
2008 to 2012
2008 to 2012
Amount
873,900.00
1,317,900.00
3,690,120.00
432,850.00
1,760,500.00
648,000.00
1,696,500.00
133,500.00
P10,553,270.00
TCC operates under a consortium agreement with Cebu Normal University (CNU),
Cebu Technological University (CTU) and the University of the Visayas UV). Thus, for the
first four academic years (2004-2005 up to 2007-2008), entrance examination fees were
administered and collected by the aforementioned universities. It was in 2008 that TCC
started collecting the said fee from the examinees. The total collection could come up higher
than P 873,900.00 since there were also applicants who failed in the examination, as well as
those who passed but decided to enroll elsewhere.
25
Insurance fees were also collected from students at P100.00 per semester or a total of
P1,317,900.00 from SY 2008-2009 to 2012-2013 and did not include those collected from SY
2004-2005 to 2007-2008 since TCC failed to furnish the COA with data relative thereto.
On the other hand, developmental fees were collected from students to pay for
30computers, 1 printer and a local network system acquired and installed by Josrika Computer
Training Center in 2008. This lease-to-own mode of procurement, covered by a memorandum
of agreement entered into by and between the City of Talisay and Josrika Computer Training
Center, Inc., required the City to pay P35,000 per month for 3 years or a total of
P1,260,000.00. The City Accountant disclosed that the Citys obligation with Josrika
Computer Center was not recorded in the books and consequently not paid because she was
not furnished any document nor informed of the transaction. Per interview with Dr. Ramos, it
is the TCC who paid for the computers out of the amounts they collected from the students.
Based on the P35,000.00 monthly amortization, the whole obligation of P1,260,000.00 shall
have been fully paid in CY 2011. However, TCC continued to collect from its students the
amount of P280.00 at P70.00 per month for four (4) months per semester, thus collecting a
total of P3,690,120.00 as of December 31, 2012 or an excess of P2,430,120.00 as shown
below from its total cost of P1,260,000.00.
School Year
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Grand Total
Annual
Amortization to
Josrika
420,000.00
420,000.00
420,000.00
1,260,000.00
Collected by
TCC
370,720.00
734,720.00
853,440.00
883,680.00
847,560.00
3,690,120.00
Difference/ (Over
Collections)
49,280.00
( 314,720.00)
( 433,440.00)
( 883,680.00)
( 847,560.00)
(2,430,120.00)
`
TESDA competency assessment fees (NC II) were collected from incoming second
year IT students. While TESDA Circular No. 18 series of 2008 sets the assessment fee at
P500.00, TCC collected P550.00 from each student. Total amount collected by the college
administration covering school year 2008-2009 up to 2012-2013 is estimated at P432,850.00.
Based on the data extracted from TCC website, the number of LET takers since 2008
up to 2012 totaled 503. At P3,500.00 per reviewer, TCC may have collected P1,760,500.0 for
the 5-year period. According to the administration, collections from review fees were used to
pay the LET reviewers and other incidental expenses. It is also stressed that the college
administration, aside from not seeking the approval of the Board of Trustees for this activity,
used the school facilities, light and water.
Data from the Commission on Higher Education (CHED) and TCC disclosed that total
collection from tuition fees of 216 students who took up DPE and masteral courses from
2009-2012 was at least P648,000.00. The amount could be higher, however, data for SY 20102011 for masteral courses was not available.
26
Collection for graduation fees amounted to at least P1,696,500.00 as records available

were only for school years 2009-2010, 2011-2012 and 2012-2013.
No record is available for amounts collected from issuance of transcript of records
(TOR). However, our computation based on 1,335 graduates excluding SY 2008-2009 and
2010-2011 at 2 pages of TOR per graduate, shows an estimated income from issuance of TOR
of not less than P133,500.00, details of which is shown hereunder.
2 pages of TOR @ P50
x no. of graduates
income from TOR
100.00
1335
133,500.00
TCC collected the above-mentioned fees without approval from the Board of Trustees.
As provided in Section 4(d) of City Ordinance No. 2005-15, only the Talisay City College
Board of Trustees has the power to fix the tuition fees and other necessary school charges,
such as but not limited to matriculation fees, graduation fees and laboratory fees.
All these collections were not remitted to the CTO for proper recording and
accounting which the school officials explained that these were used to pay for necessary
expenses. Some lists containing accounting of the funds showed that collections were spent
for expenses other than the purpose for which these were collected such as:
school, office and construction supplies

food, meals and snacks
newspaper subscription & long distance calls
gasoline expenses, fare, labor
photocopy and other miscellaneous expenses
stipend for drivers, emcees & waiters
cash gift to guards, utility & admin
financial assistance & subsidy
LCD projector and others
The schools method of disbursement was not in accordance with the standard
disbursement procedures ideal in local government transactions. The school administration
did not obtain the approval of the City Mayor who has full control of the financial affairs of
TCC.
It is emphasized that under Section 344 of RA 7160, no money shall be disbursed
unless the local budget officer certifies to the existence of appropriation that has been legally
made for the purpose, the local accountant has obligated said appropriation, and the local
treasurer certifies to the availability of funds for the purpose. On this note, TCC
disbursements were made in contrary therewith, for it was done based on exclusive TCC
procedures and discretion.
Dr. Ramos being at the helm of the City College seemed to authorize the use of these
collections which is not within the confines of his functions or authority as this power belongs
27
to the board of trustees. Dr. Ramos demonstrably breached the terms and conditions of his
contract with the City of Talisay by appropriating the subject funds for different purposes at
his own discretion, being the College President, without an appropriation ordinance and/or
prior approval from the Board of Trustees which is the governing body of the City College
and may have overstepped their exclusive powers.
For lack of sufficient documents, proper accounting and reconciliation of the amounts
collected and spent could not be immediately ascertained, thus giving doubt on the validity
and regularity of the alleged transactions.
Management Comment:
On developmental fund, the College President justified that this was intended
primarily to defray the obligation under the contract agreement between the College and
Josrika Corporation.
The so-called review class is a yearly special project of the education course graduates.
The amount was raised pursuant to an agreement of the graduates, and this is evidenced by
their resolution to that effect. The money belongs to them, partakes of private in nature, and
does not pertain to the city coffers.
The insurance and graduation fees are likewise amounts that were raised pursuant to a
voluntary agreement among the parents and students concerned.
TESDA fee are set under TESDA Circular No. 18, s.2008 in the amount of P500.00,
the P50.00 was actually applied for the other equally important requirements.
Insofar as the transcript of records fee is concerned the implementation of the
administrative fee of P50.00 per page was started in April 2012.
The conduct of DPE and graduate classes at TCC started in school year 2010. The
College had to utilize the resources available to defray the necessary expenses to start the
program.
Auditors Rejoinder:
If indeed the developmental fund was intended primarily to defray the obligation
under contract agreement between the College and Josrika Corporation, TCC should have
called the attention of the City Treasurer for her to send a representative to collect the fees and
deposit the same to the City coffers. Any obligation to Josrika will be paid by the City strictly
in accordance with COA rules and regulations on disbursement procedures.
The LET review class is held at TCC campus using the premises and facilities thereat
such as electricity and water. Review fees relative thereto should be remitted to the City.
28
The insurance/examination fees, TESDA and tuition fees, tuition for the DPE and
graduate classes are public funds collected from students hence should be receipted and
remitted to the City.
a. require the College President to account for at least P10,553,270.00 worth of
collections comprising of different fees collected by TCC and those of
undetermined amount such as examination and insurance fees from 2004 to 2008,
graduation fee from SY 2008-2009 and 2010-2011, masteral courses fee from SY
2010 to 2011 and such other fees which TCC collected from students but not
issued with the required official receipts;
b. direct the Talisay City College to immediately stop collecting school fees unless
with prior approval from the Board of Trustees;
c. direct designated collecting officer to issue official receipt upon collection fees;
d. instruct the City Treasurer to assign a regular collecting officer to TCC to collect
the above mentioned fees from students and issue the appropriate official receipts
in acknowledgement thereof;
e. require the TCC to follow strictly the prescribed disbursement procedures and
stop the practice of using collections for payment of school/office supplies,
construction materials, meals, gasoline, financial assistance and other expenses.
f. conduct impartial investigation and as evidences may warrant, institute
appropriate sanctions against those erring TCC personnel
6. The contract of service between Talisay City College President and the City of
Talisay covering January 1 December 31, 2012 is deemed prejudicial to the
interest of the City considering that the College President who is required to render
full time service is also under contract with another school contrary to Section 19,
Rule VII of CHED Memorandum Order No. 4, series of 2007 and Talisay City
Ordinance No. 2008-11 approved on December 2, 2008.
Section 6 (a) of Talisay City Ordinance No. 2008-11 approved on December 2, 2008
states that the administration of the College shall be vested in the President of Talisay City
College who shall render full time service.
Section 19, Rule VII of the Commission on Higher Education (CHED) Memorandum
Order no. 04 s. of 2007 provides that the administration of a local higher education institution
(HEI) is vested on its President who must render full time service. He shall be responsible to
the Board for the implementation of all its policies, programs, programs and services.
29
Perusal of the contract of service dated December 29, 2011 entered into between the
City of Talisay represented by its Honorable City Mayor and Talisay College City (TCC)
President showed that under Section 1 thereof, the College President shall provide
management services at the TCC for a period of one (1) year starting January 1, 2012 to
December 30, 3012.
In addition thereto, Section 8 of the contract requires the College President to serve the
City of Talisay faithfully and well and shall at all times devote the appropriate time and
attention to the tasks and assignments given and/or entrusted to him by the City Mayor and
the TCC Board of Trustees and shall do and perform all such services, acts and things
connected therewith, as the City Mayor may from time to time so direct.
Aggravating to the existing situation in the City of Talisay is the contract Dr. Ramos
has with Lapulapu City College (LLC). He entered into contract with the City of Lapulapu as
President of LLC performing the same set of duties and responsibilities simultaneously with
TCC receiving a fix monthly salary and honorarium for outreach activities of P50,334.00 and
P8,000.00, respectively, since CY 2010 up to present.
Terms/conditions
of
contract
1. Designation
2. Duration of contract
3. Compensation
4.Duties
Responsibilities
and
Talisay City College, City of Talisay

College President
Jan. 1, 2012 to Dec. 31, 2012
Monthly fee of P40,000.00;
Monthly
honorarium
of
P8,000.00; including benefits
given to regular employees
like 13th month and other extra
bonuses;
30 days vacation and sick

leave credits;
travelling allowance while on

official travel.
Exercise
general
administration
and
supervision;
Implement general policies

laid down by the BOT;
Develop guidelines for the

proper implementation of
plans and programs of the
College;
Plan, coordinate, administer

and evaluate all programs,
programs and activities of the
College;
Approve the sem class

programs, faculty loadings
and
extra-curricular
assignments;
Propose an agenda for

meetings of the BOT;
Prepare college performance

targets
Prepare budget proposal;
30
Lapulapu City College, City of

Lapulapu
College President
January 1, 2012 to December 31, 2012
Monthly fee of P50,334.00;
Monthly honorarium of
P8,000.00;
Travelling allowance while

on official travel.
Exercise
general
administration
and
supervision;
Implement general policies
laid down by the BOT;
Develop guidelines for the
proper implementation of
plans and programs of the
College;
Plan, coordinate, administer
and evaluate all programs,
programs and activities of the
College;
Approve the sem class
programs, faculty loadings
and
extra-curricular
assignments;
Propose an agenda for
meetings of the BOT;
Prepare college performance
targets
Prepare budget proposal;
5. Place of Office
Recommend/facilitate
the
recruitment
of
faculty/personnel;
Submit
accomplishment
reports;
Take appropriate disciplinary
action relative to violations
Book V, EO 292, RA 6713
and 3019;
Perform addl duties as maybe
assigned by BOT.
Talisay City College
Recommend/facilitate
the
recruitment
of
faculty/personnel;
Submit
accomplishment
reports;
Take appropriate disciplinary
action relative to violations
Book V, EO 292, RA 6713
and 3019;
Perform addl duties as
maybe assigned by BOT.
Lapulapu City Vocational Technical

Bldg., Lapulapu City College
Although there is no specific provision in the contract regarding the required number
of hours which Dr. Ramos is supposed to render service, it is understandable that he is to work
on eight (8) hours a day or 40 hours a week. Under Section 6 (a) of Talisay City Ordinance
No. 2008-11, it states that the administration of the College shall be vested in the President of
Talisay City College who shall render full time service. Consistent therewith, Section 19 of
the Commission on Higher Education (CHED) memorandum order no. 04 s. of 2007, provides
that the administration of a local higher education institution (HEI) which in this instance is
referred to as the Talisay City College (TCC), is vested on its President who must render full
time service. In other words, the City of Talisay is not inclined to hire a College President on
part time basis or through consultancy contract on account of the above City Ordinance and
CHED Memorandum.
Having to attend to two schools which are separated more or less 20 kilometers away
from each other, there could be a likely scenario that Dr. Ramos would have to sacrifice his
time and derail the services required of him in Talisay City College on occasions wherein his
presence is also needed at Lapulapu City College.
Records disclosed that the contract of Dr. Ramos with the City of Talisay was made
effective way back in CY 2004 yet and renewed annually until CY 2012.
Management Comment:
Dr. Ramos is not a regular employee who is required to render a rigid eight to five
routine. There being no employer-employee relationship, there is no legal impediment for the
contracting party concerned to be engaged on contract with another juridical entity.
Auditors Rejoinder:
Entering into contracts with the Talisay City College and Lapulapu City College for
the same period contradict to the provisions of Section 6(a) of Talisay City Ordinance No.
2008-11 and Section 19, Rule VII of CHED Memorandum Order No. 4, s. of 2007 which
requires rendition of full time service by the College President.
31

b. direct Dr. Ramos to render full time service in conformity with the CHED
c. observe the proper format and insertions of the required conditions or
provisions in the contract such as the rendition of full time service pursuant to
CHED Memorandum Order No. 4 and Talisay City Ordinance No. 2008-11.
d. instruct Dr. Ramos to explain in writing relative to his apparent failure to
render full time service and direct him to refund the amount equivalent to his
salary during the time he reported for duty at the Lapulapu City College. If
possible, coordinate with the City of Lapulapu for the appropriate records
showing therein the dates when he reported thereat.
7. Hiring of teaching and non-teaching personnel by the College President at Talisay
City College as well as the fixing and adjusting of their salaries were done without
the necessary approval and confirmation from the Board of Trustees in contrary to
Section 4(g & h) of Republic Act 8292, otherwise known as the Higher Education
Modernization Act of 1997, Section 4(g) of SP Ordinance No. 2005-15 and Section
17 (i & j) of CHED Memorandum Order No. 04, series of 2007, thus resulting in the
irregular payment of government funds.
The term irregular expenditures signifies an expenditure incurred without adhering to
established rules, regulations, procedural guidelines, policies, principles or practices that have
gained recognition in laws. Irregular expenditures are incurred if funds are disbursed without
conforming to prescribed usages and rules of discipline. There is no observance of an
established pattern, course and mode of action, behavior, or conduct in the incurrence of an
irregular expenditure. A transaction conducted in a manner that deviates or departs from, or
which does not comply with standards set is deemed irregular. A transaction which fails to
follow or violates appropriate rules of procedure is, likewise, irregular.
Section 4(g & h) of Republic Act (RA) 8292 entitled the Higher Education
Modernization Act of 1997 provides the powers and duties of governing boards as follows:
g) To appoint, upon the recommendation of the president of the university or college,
vice presidents, deans, directors, heads of departments, faculty members and other officials
and employees;
h) To fix and adjust salaries of faculty members and administrative officials and
employees subject to the provisions of the revised compensation and classification system and
other pertinent budget and compensation laws governing hours of service, and such other
duties and conditions as it may deem proper; to grant them, at its discretion, leaves of absence
under such regulations as it may promulgate, any provisions of existing law to the contrary
32
notwithstanding; and to remove them for cause in accordance with the requirements of due
process of law.
Sections 3 and 4 (g & h) of SP Ordinance No. 2005-15 also provide that the governing
body of the College is hereby vested in the Board of Trustees which shall have the specific
powers and duties in addition to its general powers of administration such as to appoint, upon
the recommendation of the director of the College, heads of departments, faculty members
and other official and employees and to fix and adjust salaries of faculty members,
administrative officials and employees.
Section 17 (j) of CHED Memorandum Order No. 04, series of 2007 also provides the
powers and duties of the governing boards:
j.
Confirm appointments of other school officials, teaching and non-teaching
personnel appointed by the President.
Verification of Contract of Service and board resolutions of Talisay City College
(TCC) disclosed that the hiring of Management and Administrative Staff and Faculty
Members was done by the College President without the approval/confirmation of Board of
Trustees. Likewise, it is the College President who fixes and adjusts the salaries of teaching
and non-teaching personnel thus encroaching the powers and duties of the governing boards
which is in contrary to the above mentioned laws, rules and regulations. It is emphasized that
it is the duty of the College President as contained in his Service Contract to inform the BOT
on the hiring to facilitate the recruitment of teachers at the City College.
Management Comment:
The College President has not exceeded his authority in respect to the hiring and fixing
of honoraria of personnel. The College President has acted within the scope of his
recommendatory authority under Talisay City Ordinance No. 15-2005. It is the Mayor in his
capacity as chairman of the board of trustees who approves the contract in behalf of the
appointing authority.
Auditors Rejoinder:
It is the duty of the College President to inform the Board of Trustees on the hiring and
fixing of honoraria of college personnel. He should have submitted the contracts to the
members of BOT for their confirmation prior to submission to the City Mayor for approval.
The City Mayor is only the Chairman of the BOT and his actions need the approval of the
members of BOT prior to signing of the contract.
a. direct the College President to explain why the hiring of teaching and nonteaching personnel as well as the fixing and adjusting of their salaries were done
without the approval/confirmation of Board of Trustees.
33
b. henceforth, direct the College President to abide by the laws, rules and
regulations in the hiring of faculty members and staff to avoid disallowances
and/or suspensions in the future.
8. Of the eighty-nine (89) teaching and non-teaching personnel assigned at Talisay
City College, only fifty-nine (59) are covered with service contracts while the
remaining thirty (30) are without service contracts, thereby preventing the
immediate review thereof and the timely action of any defect or deficiency that
maybe noted thereon in violation of Section 4 (6) of Presidential Decree (PD) 1445.
Section 4 (6) of PD 1445 provides that claims against government funds shall be
supported with complete documentation.
Item 3.1.1 of COA Cir. No. 2009-001 requires that Within five (5) working days from
the execution of a contract by the government or any of its subdivisions, agencies or
instrumentalities including government-owned or controlled corporations and their
subsidiaries, a copy of said contract and each of all the documents forming part thereof by
reference or incorporation shall be furnished to the Auditor of the agency concerned.
Review of service contracts submitted by the College President and post-audit of
sampled payrolls for December 2012 disclosed that of the eighty-nine (89) teaching and nonteaching personnel assigned at Talisay City College only fifty-nine (59) are with service
contracts while the remaining thirty (30) are without copies of service contracts as follows:
1
2
3
4
5
6
7
8
9
1
0
1
1
1
2
1
3
1
4
1
5
List of personnel without service contracts

Abacajan, Jasyer
Beloria, Alvin
Carbonquillo, Angelie
Cardillo, Marili
Col. Banares, Raymundo
Daclan, Humildad
De Perio, Corazon
Denuyo, Woodrow
Derasin, Carmel Vip
Derasin, Luis
Diones, Lito
Fr. Rosende, Buboy
Getanuelas, Roland
Gonzales, Laisa
Hernani, Ma. Rosita
34
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
3
0
Lapiz, Eduardo Jr.

Lopez, Cecilia
Lovitos, Janet
Msg. Marikil, Rene
Navarro, Geneveve
Olis, Caridad
Pano, Jennifer
Penaranda, Enrique
Pepito, Marcial
Pono, Francisco Jr.
Rosinto, Hermenegilda
Sr. Ramirrez, Dolores
Tsg. Traya, Benedicto
Valleser, Jacqueline
Yongco, Johnbel
It has also been noted that Management failed to furnish COA with copies of service
contracts within five (5) days from its issuance in contrary to the above mentioned
regulations.
Moreover, the submission of service contracts and other evidences are necessary to
establish the validity, legality and correctness of the claim for payment. Without the herein
mentioned documents, the Auditor is prevented from conducting a thorough review to
determine proper compliance as to honorarium rates and other terms and conditions of the
contract.
Inquiry from the Administration Office, Legal and Accounting Offices disclosed that
they dont have copies on file of the contracts. Further, they could not recall if there were
service contracts issued during the year for the above named personnel.
Management Comment:
35
Management promised to submit the contracts.

a. direct the College President and/or personnel-in-charge for the immediate
submission of the thirty (30) missing service contracts to facilitate the review and
timely action of any defects that maybe noted.
b. stop the practice of processing claims without complete supporting documents to
avoid suspensions and/or disallowances in the future.
c. henceforth, advise the personnel-in-charge to submit copies of contracts to the
Auditor within five days from its issuance in compliance with COA Circular No.
2009-001.
9. The City paid P3,390,200.03 to the wrong claimants for a portion of lot no. 3106
where the new Talisay City Plaza was constructed in 2012 due to the failure of some
concerned City officials to hid the warning pose by the rightful owners on subject lot
prior to payment. As a result, the City government stands to lose P3,390,200.03
worth of funds thru wastage if no immediate action is taken to fast track the
recovery of the amount paid thereof.
Section 2 of Presidential Decree 1445 states that it is the policy of the State that all
resources of the government shall be managed, expended or utilized in accordance with law
and regulations and safeguarded against loss or wastage through illegal or improper
disposition, with a view to ensuring efficiency, economy and effectiveness in the operations of
government. The responsibility to take care that such policy is faithfully adhered to rests
directly with the chief or head of the government agency concerned.
Section 105(2) of the same Decree also provides that every officer accountable for
government funds shall be liable for all losses resulting from the unlawful deposit, use or
application thereof and for all losses attributable to negligence in the keeping of the funds.
Section 4(4) of the Government Auditing Code of the Philippines provides that
financial transactions and operations of any government agency shall be governed by the
fundamental principles set forth hereunder, to wit:
(4)
Fiscal responsibility shall to the greatest extent, be shared by all those

exercising authority over the financial affairs, transactions, and
operations of the government agency.
Records disclosed that the City expropriated Lot no. 3106 as part of the lot for the
New Talisay City Plaza. Thus on August 3, 2009, the Heirs of Felicia Delima, Margarita
Basillote, Dionisia Basillote, Damaso Delima and Sixto Delima executed a Deed of Absolute
Sale and sold a portion equivalent to 1,541 square meters of Lot 3106 with all improvements
thereon to the City of Talisay covered by Transfer Certificate of Title (TCT) No. 99450 at
36
P2,200.00 per square meter or a total of P3,390,200.03. On August 27, 2009, the heirs of
Telesfora Delima represented by Rodulfo V. Delima, also claimants to subject lot, objected to
the sale and informed the City Mayor of the pendency of a case relative thereto on the
recovery of ownership and cancellation of TCT No. 99450. The Heirs of Rodulfo V. Delima
also requested the City Mayor to wait for the finality of the decision still pending with the
Court of Appeals prior to payment.
From the records, it is gathered that a case for recovery of ownership and cancellation
of title on Lot no. 3106 was filed by the Heirs of Rodulfo Delima, et al as Plaintiffs-Appellees
against the Heirs of Felicia Delima, et al, as defendants-appellants, which the Municipal Trial
Court of Talisay City ruled in favor of the former. Thereafter, defendants filed a Notice of
Appeal elevating the case to the Regional Trial Court (RTC), Branch 19, Cebu City. As earlier
stated, the RTC in the exercise of its appellate jurisdiction- affirmed the Decision of the court
of origin in toto. The said resolution declared that the defendants failed to show any
reversible error on the judgment issued by the lower courts and further declared the following:
1. Declaring Lot No. 3106 as co-owned by
1)
2)
3)
4)
5)
Heirs of Ruperta Delima;

Heirs of Florencio Delima;
Heirs of Aproniano Delima;
Heirs of Victoriana Delima;
Heirs of Galo Delima;
in the proportion of one fifth (1/5) share each, in accordance with the Decision dated October
28, 1964 in Civil Cases Nos. 7273 and 7305, as affirmed by the Court of Appeals in its
Decision promulgated on August 29, 1969 in CA G.R. No. 35742-43 R.
This decision established that the above named heirs are the real owners of Lot No.
3106 and not the heirs Felicia Delima.
2. Declaring the Deed of Extra-judicial Declaration of Heirs dated April 12, 1996
acknowledged before Notary Public Leonardo Garcillano and entered in his
notarial register as Doc. No. 214; Page No. 44; Book No. 122; Series of 1996 as
null and void;
3. Ordering the Register of Deeds of the Province of Cebu to cancel Transfer
Certificate of Title T-99450 in the name of the defendants (heirs of Felicia Delima)
and in lieu thereof to issue another transfer certificate of title in the name of the
Heirs of Ruperta Delima, Florencio Delima, Aproniano Delima, Victoriana
Delima and Galo Delima, as co-owners of Lot No. 3106 in the proportion of one
fifth (1/5) share each;
37
4. Condemning the defendants to pay plaintiffs attorneys and litigation expenses in

the amount of P10,000.00 and to pay the cost of the suit.
Hence, defendants again elevated the case to the Court of Appeals and Supreme Court,
but were also denied for failure to show any irreversible error. The decision issued by the
lower courts and Court of Appeals and the denial of the petition for review by the Supreme
Court makes the decision final and executory on October 19, 2011.
Shown below are the transactions covering payment of the 1,541 square meters lot paid
to the Heirs of Felicia Delima, et al totaling P3,390,200.03 from August 2009 to November
2012 with the following reference documents and particulars:
DV
No./Payroll
100-09087543/
Date/s
Aug/2009
Amount
P
75,337.78
Payee/s
Anita Baculi full payment
Purpose
Payment of lot 3106, with
TCT 99450 as heirs of
Felicia Delima who is also
the heir to Telesforo
Delima.
-do-
100-0908-7545
Aug/2009
376,688.89
100-0908-7546
Aug/2009
1,130,066.67
100-0908-7544
Aug/2009
150,675.56
Neri Labrador Ibo - full

payment
Bienvenido Delima full
payment
Abundia Mantalaba
100-0908-7921
Aug/2009
376,688.89
Juanita Labrador Bacus
-do-
100-0908-7920
Aug/2009
75,337.78
Juanita Bacus
-do-
100-0908-7919
Aug/2009
37,668.89
Crisostomo Labrador
-do-
100-091110609
100-091110646
100-091211961
Nov/2009
1,130,066.67
Juanita Bacus
-do-
Nov/2012
18,834.45
Jose Gorlito Ordiz
-do-
Nov/2009
18,834.45
Juanita Bacus
-do-
Total
-do-
P3,390,200.03
-do-do-
The City paid to the wrong parties the amount of P3,390,200.03 for Lot No. 3106
which is a part of the lot where the new Talisay City Plaza was constructed in 2012 due to the
failure of some concerned City officials to hid the warning pose by other claimants of the lot
and review the documents carefully prior to payment. The City Government stands to lose
P3,390,200.03 worth of government funds thru wastage if no appropriate action is taken to
fast track the recovery of the amount paid to wrong claimants in contrary to the above
mentioned regulations.
In view of the aforecited decision, all payments made by the City of Talisay on Lot
3106 are rendered irregular and illegal.
38
Management Comment:
Management justified that title submitted was clean without any annotations.
Auditors Rejoinder:
Despite the warning posed by the rightful owners on the pendency of a case on
subject lot, the City still paid the lot to the wrong claimants.
a. demand from those parties where payments were made to refund the amount
paid to them and/or from City officials responsible thereto because as officials of
a government agency they are responsible that government resources are
managed, expended or utilized in accordance with law and regulations and
safeguarded against loss or wastage through illegal or improper disposition, with
a view to ensuring efficiency, economy and effectiveness in the operations of
government.
b. refrain from paying claims for lot acquisitions affected by the implementation of
the Citys development projects if subject properties are involved in ownership
issues unless the subject concerns are properly addressed ensuring that the
interest of the government is fully protected.
c. conduct impartial investigation and institute appropriate sanctions against those
responsible for the irregular act.
10. Disbursements totaling P5,866,930.00 were made for repair of motor vehicle and
heavy equipment supported with spurious/falsified canvass papers, which gave
undue advantage to the contract to the prejudice of the interest of the government.
Article 171 of the Revised Penal Code describes the acts attributable to falsification by
public officer or employee, such as; counterfeiting or imitating any handwriting or signature;
causing it to appear that persons have participated in any act or proceeding when they did not
in fact so participate, among others.
Section 3(e & g) of the Anti-Graft and Corrupt Practices Act provides that the
following shall constitute corrupt practices of any public officer and are hereby declared to
be unlawful:
e. Causing any undue injury to any party, including the Government, or giving any
private party any unwarranted benefits, advantage or preference in the discharge of
his official administrative or judicial functions through manifest partiality, evident
bad faith or gross inexcusable negligence
39
g. Entering, on behalf of the Government, into any contract or transaction manifestly

and grossly disadvantageous to the same, whether or not the public officer profited
or will profit thereby.
Section 103 of Presidential Decree No. 1445 states that expenditures of government
funds or uses of government property in violation of law or regulations shall be a personal
liability of the official or employee found to be responsible therefor.
Verification of records for CY 2012 revealed that there were several repairs of motor
vehicles and heavy equipment totaling P5,866,930.00 comprising of 29 sampled transactions
for the year. Records further revealed that payment for these transactions were usually
supported with three (3) price quotations procured thru small value procurement with the
same suppliers regularly alternating each other for their supposed participation in the bidding
such as SSVF Add Trading, Kwik Way Engineering Work, JBEL Heavy Equipment Parts
Center, Bordeos Heavy Equipment Parts Center, RUD General Services Corporation, First
Engine Rebuilder Inc., Sacris Machine Shop and New A & U Marketing as shown in the next
page. For all these transactions, SSVF Add Trading is the winning bidder based on the
Technical Working Group (TWG) recommendations whose functions include procurement
planning, purchasing, contract management and procurement monitoring.
40
41
A site visit and interview conducted with some losing bidders revealed various
discrepancies as discussed hereunder:
a. Kwik Way Engeering Work (KWEW) whose office address is located at 839 M.J.
Cuenco Avenue, Cebu City purportedly submitted 14 bid quotations/canvass documents out
of 29 transactions which contained questionable signatures of Mr. Vicinte Inting Pongot or
Clemente Inting Pongot.
Mr. Clemente Ponggot, salesman of KWEW, disowned his signatures on the subject
documents for the various repairs and showed his office identification card (ID) whose
signature differs from the canvass documents. Further, Mr. Ponggot explained that they only
recondition engine and that his family name is spelled as Ponggot and not Pongot.
Likewise, Mr. Alfredo C. Cagaanan, Manager of KWEW also denied knowing any
employee with the name of Vicinte Inting Pongot but they have an employee named
Clemente Inting Ponggot per certification of dated May 16, 2013.
b. JBEL Heaving Equipment Parts Center (JHEPC) business line is selling heavy
equipment parts and repair hydraulic system as revealed by Mr. Jolly B. Bordeos, general
manager thereat per certification dated May 15, 2013. It is located at 200 Ahescor Building,
Subangdaku, Mandaue City.
It appeared that JHEPC submitted canvass documents for at least thirteen (13)
transactions for the supply of various repairs/items not related to their line of business.
Interview with Mr. Jolly V. Bordeos at his office on May 15, 2013 disclosed that he could not
remember to have participated in any bidding or submitted price quotations at Talisay City
Hall. When asked to comment on the authenticity of two (2) sampled bid quotations/canvass
documents supposedly signed by him and submitted to the City of Talisay, Mr. Bordeos
disowned his signatures on the transactions. Further, Mr. Bordeos
42
clarified that his name is spelled Jolly and not Joly as appearing in the canvass documents
and that his signatures differs therein as shown in his ID.
In eleven (11) instances, the name of Mr. Lito Halili appeared to have submitted
canvass documents in behalf of JHEPC. Mr. Halili is not an employee of JHEPC but is the
owner of Bordeos Heavy Equipement Parts Center presently B & L Heavy Equipment Parts
Center. He also disowned his signatures in the documents and denied having participated or
submitted canvass documents. He also showed his office ID whose signature differs thereat.
c. Bordeos Heavy Equipment Parts Center (BHEPC) presently the B & L Heavy
Equipment Parts Center is holding office at 183-185D Subangdaku, Mandaue City and is
owned by Mr. Lito T. Halili. The establishment is dealing only on heavy equipment and does
not repair terrano patrol car per interview notes signed by Mr. Lito Halili on May 16, 2013.
BHEPC allegedly submitted three (3) canvass documents signed by Mr. Joly Bordeos,
general manager of JHEPC who also disowned his signatures thereat, as discussed in the
preceding paragraph, thus reinforcing our conclusion that subject documents were indeed
falsified.
d.
Inquiry with Mr. Harold B. Tomarong, technician of RUD General Services
Corp. disclosed that they only calibrate injection pump and do not repair engine which runs
counter to the four (4) canvass documents supposedly participated by them at the City of
Talisay. It was also learned that their job estimate is pre-numbered at the upper left side of
the document. Mr. Tomarong whose nickname is Roy disclaimed participation and disowned
his signatures in the canvass documents. He submitted xerox copy of his ID with his
signature as proof thereto.
e. On the other hand, First engine Rebuilder, Inc. (FERI) with office address at MJ
Cuenco (infront Harbor View Hotel), Cebu City, have stop operation sometime in May 2010
and that the place is now occupied by CSAN Enterprises. A certification signed by Mr.
Angel D. Yap, Proprietor, CSAN Enterprises dated May 16, 2013 was also submitted. FERI
ostensibly submitted two (2) canvass documents out of 29 transactions for CY 2012.
This practice is prejudicial to the interest of the government, deemed unlawful and
punishable under Article 171 of the Revised Penal Code and Section 3(e & g) of the AntiGraft and Corrupt Practices Act.
Subject disbursements shall be a personal liability of the official or employee found to
be directly responsible therefor pursuant to Section 103 of PD 1445.
a. conduct an impartial investigation and institute appropriate sanctions against
those personnel found responsible in the commission of such unlawful act;
43
b. direct the personnel concerned found responsible thereto to immediately refund

the amount of P5,866,930.00 otherwise subject disbursements will be disallowed
and/or suspended in audit;
c. remind the TWG to scrutinize and evaluate the canvass documents/bid
quotations carefully to promote fairness and transparency in the bidding process
and obtain reasonable bid offers advantageous to the government thus avoiding a
similar situation in the future.
11. Three (3) completed infrastructure projects with contract amount of P6,914,990.08
were found deficient by a total of 29.38% in workmanship due to failure of the city
officials to exercise due care and diligence in the performance of their functions,
thus resulting in the overpayment of the contractor by P726,743.17 in contrary to
Section 88 of PD 1445.
Section 88 of P.D. 1445 provides that no payment, partial or final, shall be made on
any such contract except upon a certification by the head of the agency concerned to the effect
that the services or supplies and materials have been rendered or delivered in accordance with
the terms of the contract and have been duly inspected and accepted.
Art. 1163, Chapter 2 of the Civil Code of the Philippines also provides that every
person obliged to give something is also obliged to take care of it with the proper diligence of
a good father of a family, unless the law or the stipulation of the parties requires another
standard of care.
The City entered into contract with Tuanson Construction for three (3) infrastructure
projects namely: construction of DSWD Detention Center perimeter fence with entrance gate
and guard house costing P1,623,768.00; extension for meat and fish section at MacapagalGullas Public Market in Lagtang amounting to P2,781,344.25; and additional works at the
same public market in the amount of P2,509,877.83 which were 100% completed per
Statement of Work Accomplished on June 4, 2012, on April 12, 2012 and July 5,
2012,respectively. The contractor collected its full payment on the herein mentioned projects
on June 5, 2012 per check no. 2420885, May 3, 2012 per check no. 2420184 and on
September 6, 2012 per check no. 2423028.
However, per inspection conducted by COA, TITS, RO7 personnel together with the
representative from Talisay City Engineering Office, the projects were not yet completed. Per
inspection report of COA, a total deficiency of 29.38% was noted, with an equivalent amount
of P726,743.17, computed below.
Work Items
Item
No.
A.
I.
Contract
Description
DSWD Detention Center
Amount
Mobilization and
Demobilization
P8,000.00
Wt%
Agencys Reported
Accomplishment
%
Completed
Wt%
P0.49%
100%
44
0.49%
COA Verified
Accomplisment
%
Completed
Wt%
100%
0.49%
%
Variance
Equivalent
Cost
II.
III.
IV.
B.
I.
II.
III.
C.
I.
Work Items
Excavation and demolition
Slope Protection
Contract
41,000.00
2.52%
Agencys Reported
Accomplishment
100%
2.52%
COA Verified
Accomplisment
100%
2.52%
%
Variance
-
Equivalent
Cost
28,484.00
1.75%
100%
1.75%
100%
1.75%
Fence w/ entrance gate and

guard house
Sub-total
Extension for meat and fish
section at Macapacal/Gullas
Public Market
Direct Cost
a.Waste water plumbing for
meat stalls
b.Sanitary plumbing for meat
stalls
c.Concrete canal w/ steel
grating
d.Fab& installation of
fish/meat stalls
Indirect Cost
Tax (12% of DC/IC)
Sub-total
Addl works Public Market
Direct Cost
a.Mobilization/demobilizatio
n
b.cutting,demolition&
excavation
c.Filling mat-stairs/ramp
d.Concrete stairs/ramp
w/railings & storagebeneath
1,546,284.00
95.23%
100%
95.23%
96.62%
92.01%
3.22%
52,272.37
1,623,768.00
100.00%
96.78%
3.22%
52,272.37
100.00%
49,126.50
1.77%
100%
1.77%
100%
1.77%
55,228.50
1.99%
100%
1.99%
100%
1.99%
183,756.60
6.61%
100%
6.61%
0%
0.00%
6.61%
1,764,238.05
63.43%
100%
63.43%
100%
63.43%
430,993.43
298,001.17
2,781,344.25
15.50%
10.71%
100.00%
100%
100.%
15.50%
10.71%
100.00%
100%
100%
15.50%
10.71%
93.39%
-6.61
10,000.00
0.40%
100%
0.40%
100%
0.40%
26,080.00
1.04%
100%
1.04%
100%
1.04%
10,060.00
208,960.00
0.40%
8.33%
100%
100%
0.40%
8.33%
100%
100%
0.40%
8.33%
e.Open canal @parking area

&steel grating at meat section
127,450.00
5.08%
100%
5.08%
100%
5.08%
f.Installation of steel mating

on existing railings
223,890.00
8.92%
100%
8.92%
100%
8.92%
g.Repair/rehab on roofing,
installations of roofing at
bldg. A & waterproofing at
bldg. A
354,720.00
14.13%
100%
14.13%
100%
14.13%
99,540.00
3.97%
100%
3.97%
100%
3.97%
i.Installation of bamboo
blinds at bldg. B, C & D
112,450.00
4.48%
100%
4.48%
100%
4.48%
j.Rectification of conc
flooring bldg. extension
19,800.00
0.79%
100%
0.79%
100%
0.79%
j.Chipping of market road

(slippery portion only)
29,850.00
1.19%
100%
1.19%
100%
1.19%
k.Enclosure/installation of
steel mating & barbed wire
near handwash area
9,650.00
0.38%
100%
0.38%
100%
0.38%
l.Installation of combat wire

&barbed wire on existing
fence back of bldg. D
27,935.00
1.11%
100%
1.11%
100%
1.11%
h.Rectification of lightings &

supports at fish & meat
section
45
183,756.60
Work Items
II.
Contract
Agencys Reported
Accomplishment
COA Verified
Accomplisment
%
Variance
Equivalent
Cost
m.Renovating of office 7
installation of canopy
roofing/canopy stairs w/
railings-admin.
338,074.20
13.47%
100%
13.47%
0.00%
0.00%
13.47%
n.Addl works water tankstairs/rails & supports
170,540.00
6.79%
100%
6.79%
100%
6.79%
o.30 dia, RCP drainage

outfall & catch basin
305,280.00
12.16%
100%
12.16%
50%
6.08%
6.08%
Indirect cost
435,598.63
17.36%
100%
17.36%
100%
17.36%
80.45%
19.55%
490,714.20
29.38%
726,743.17
Sub-Total
2,509,877.83
100.00%
100.00%
Grand total
6,914,990.08
100.00%
100.00%
On the Construction of DSWD Detention Center Perimeter Fence, COA TITS noted
that the discrepancy of P52,272.37 was due to the uninstalled barbed wire and short in length
of fence. The measured length during inspection was 6.50 short to the designated 102.50 m.
fence. On the other hand, the extension for meat and fish section, phase 2, at MacapacalGullas Public Market was short by P183,756.60 due to the uninstalled concrete canal with
steel grating as stated on plan while the additional works therein was deficient by P490,714.20
due to the 0.00% work completed on the renovation of office and installation of canopy
roofing/stairs with railings and 50.00% work completed on 30 diameter RCP drainage outfall
and catch basin.
As a result, the contractor was overpaid by P726,743.17due to failure of the City
Officials to exercise due care and diligence in the review and inspection of completed projects
in violation of Section 88 of P.D. 1445 and Article 1163, Chapter 2 of the Civil Code of the
Philippines.
Management Comment:
The City Engineer promised to request for a re-inspection of the projects since there
were change orders for the three projects but were not reflected in the Program of Works and
no As-built-plan submitted.
1. henceforth, direct those who are in-charge of the inspection and evaluation of
infrastructure projects to exercise due care and diligence in the performance of their
functions to avoid paying deficient contracts.
2. coordinate with Tuanson Construction for the completion of the unfinished
projects, otherwise, if no agreement is reached, cause the withholding of said amount
from its remaining collectibles until such time that the subject issue is fully settled.
46
338,074.20
152,640.00
12. Various disbursements for consultancy fees totaling P615,000.00 was charged
against the Special Education Fund contrary to the provisions of DECS, DBM and
DILG Joint Circular Nos. 01 s. 1998, 01-A s. 2000, 01-B s. 2001, and Section 100(c)
of the Local Government Code of 1991, resulting in the irregular disbursement of
government funds.
The Special Education fund (SEF) was created by virtue of RA No. 5447, which is an
Act creating a special education fund to be constituted from the proceeds of an additional real
property tax and a certain portion of the taxes on Virginia type cigarettes and duties on
imported leaf tobacco, defining the activities to be financed, creating school boards for the
purpose, and appropriating funds therefrom, which took effect on January 1, 1969. Pursuant
thereto, PD No. 464, also known as the Real Property Tax Code of the Philippines, imposed
an amount tax of 1% on real property which shall accrue to the SEF.
The SEF shall be expended exclusively for the activities of the Department of
Education (DepEd) as financial support of the government for the operation and maintenance
of elementary and secondary public schools.
Public elementary and secondary schools shall mean government financed and
managed schools which include pre-schools, elementary, secondary schools, national and
general comprehensive high schools and their annexes and those public elementary and
secondary schools that maybe established by law.
Joint Circular No. 01, s. 1998 of DECS, DBM and DILG as supplemented by Joint
Circular Nos. 01-A dated March 14, 2000 and 01-B dated June 25, 2001 provides for the rules
and regulations to be observed in the utilization of the SEF by the local school boards which
shall give priority to the following expenses:
1. Operation and maintenance of public schools, including organization of extension,
non-formal, remedial and summer cases, as well as payment of existing allowances of
teachers by local government units chargeable against SEF as of 31 December 1997,
provided that any additional allowances that may be granted to teachers by LGUs shall
be charged to the general fund of the LGUs, subject to existing rules and regulations;
2. Construction and repair of school buildings, facilities and equipment;
3. Education Research;
4. Acquisition/procurement of books, instructional materials, periodicals and equipment
including information technology resources; and
5. Expenses for school sports activities at the national, regional, division, district,
municipal and barangay levels as well as for other DECS related activities, including
co-curricular activities.
Section 100(c) of the Local Government Code also provides that the annual school
board budget shall give priority to the following:
47
1. Construction, repair, and maintenance of school buildings and other facilities of public
elementary and secondary schools;
2. Establishment and maintenance of extension classes where necessary; and
3. Sports activities at the division, district, municipal, and barangay levels
Review of records disclosed that the City represented by Hon. Socrates C. Fernandez,
City Mayor, entered into contract with Atty Edwin A. Antepuesto from July 2009 to December
2012 and engages his services as consultant on Human Resource and Personnel Actions and
other related school board concerns at the rate of Fifteen Thousand Pesos (P15,000.00) per
month chargeable against the appropriation from the Special Education Fund and such other
funds available for the said purpose.
Audit on the utilization of Special Education Fund from July 2009 to December 2012
disclosed that the total amount of P615,000.00 was expended by the City as consultancy fees
of Atty Edwin A. Antepuesto, which is contrary to the above pertinent provisions of DECS,
DBM and DILG Joint Circulars Nos. 1, 01-A and 01-B and Section 100(c) of the Local
government Code of 1991 as consultancy fees are not among those authorized as valid charges
to SEF.
It is emphasized that only the salaries and personnel related benefits of the teachers
hired to handle new classes as extensions of existing public elementary or secondary schools
established and approved by DepEd are proper charges to SEF of the City of Talisay.
Expenses such as consultancy fees should not be charged against SEF but to the General fund.
Details of consultancy charges are shown hereunder:
48
As a result, the SEF of the City of Talisay was depleted by P615,000.00.

Management Comment:
The City Budget Officer assured that expenses charged to SEF will be transferred to
the General Fund through supplemental budget considering that the services were already
rendered and that these were necessary.
Auditors Rejoinder:
Payments of consultancy service are not within the scope of the guidelines in the use
of SEF. The passage of supplemental budget transferring said expenses after payment to
General Fund is contrary to rules and regulations.
We recommend that Management refrain from using the SEF outside the scope for
which this fund was established and observe the proper utilization thereof pursuant to
the provisions of DECS, DBM and DILG Joint Circular Nos. 1, series of 1998, 01-A
series of 2000 and 01-B series of 2001 and Section 100(c) of the Local Government Code
49
of 1991 to attain the governments goal in the operation and maintenance of elementary
and secondary schools.
13. The City charged P7,016,576.08 for asphalting and drainage system, repair of motor
vehicles, consultancy fees and honorarium of job order against the five percent
(5%) local calamity fund contrary to DILG Memorandum Circular No. 2012-73
dated April 17, 2012 on the utilization of the Local Disaster Risk Reduction and
Management Fund (LDRRMF), Republic Act No. 10121 and Rule 18 of its
Implementing Rules and Regulations.
Republic Act No. 10121 otherwise known as The Philippine Disaster Risk Reduction
and Management Act of 2010, shifted the focus from disaster response and recovery towards
disaster risk reduction, preparedness and mitigation. It also modified the use and
appropriation of the local calamity fund or what is now known to be as the LDRRMF.
Section 21 of RA 10121 provides that .not less than five percent (5%) of the
estimated revenue from regular sources shall be set aside as the Local Disaster Risk Reduction
and Management Fund
The LDRRMF, as enunciated in Section 21 of the said law, and in Rule 18 of its
Implementing Rules and Regulations, is to be used for disaster risk management activities,
support to other affected LGUs and quick response fund or stand-by fund for relief and
recovery programs.
DILG Memorandum Circular No. 2012-73 enjoined all Local Chief Executives to
utilize their LDRRMF in the procurement of basic rescue and response equipment and to
operationalize the provisions of the National DRRM Plan and National Climate Change
Action Plan, in accordance with the pertinent provisions of related laws and its implementing
rules and regulations. Seventy (70%) of the 5% of LDRRMF may be utilized to procure early
warning systems, preparedness equipment and other equipage, such as but not limited to the
items for flooding, earthquake, volcanic eruption and landslide. Further, to operationalize the
relevant provisions of RA No. 10121, LGUs are also enjoined to refer to relevant aspects
reflected in the National DRRM Plan in the utilization of their LDRRMF for the prevention
and mitigation, preparedness, response and reconstruction and rehabilitation.
Section 1, Rule 18 of the implementing rules and regulations of RA No. 10121
provides that the present local calamity fund shall henceforth be known as the LDRRMF. Not
less than five percent (5%) of the estimated revenue from regular sources shall be set aside as
the LDRRMF to support disaster risk management activities such as, but not limited to, predisaster preparedness programs including training, purchasing lifesaving rescue equipment,
supplies and medicines, for post-disaster activities, for the payment of premiums on calamity
insurance and construction of evacuation centers.
Audit on the utilization of 5% local calamity fund for CY 2012 disclosed that the city
appropriated the amount of P21,906,770.00 or 5% out of the total estimated revenue from all
sources totaling P438,135,403.00. Records also revealed that the amount of P18,124,939.18
or 82.74% was expended from January to December 2012 but it includes charges of
P7,016,576.08 for asphalting and drainage system of P2,609,000.00, repair and maintenance
50
of motor vehicles costing P2,755,000.00, consultancy fees totaling P120,000.00 and daily
wage honorarium for job order totaling P1,532,576.08, summarized below, which is contrary
to the pertinent provisions of DILG Memorandum Circular No. 2012-73, RA No. 10121 and
Section 1, Rule 18 of its implementing rules and regulations.
Management Comment:
Management justified that the nature of the above disbursements are all disaster
reduction, preparedness and mitigations and in accordance with the DILG MC No. 2012-73,
RA No. 101221 and Section R.18 of its implementing rules and regulations.
Auditor Rejoinder:
The utilization of the subject funds was irregular since it was outside the purpose for
which the 5% calamity fund was intended. Moreover, these charges are not among the items
contemplated to be part of the disaster risk management activities enumerated in DILG
Memorandum Circular No. 2112-73.
a. direct the officials concerned to refund the amount of P7,016,576.08 and hold all
those who authorized the payment as jointly and severally liable of the amount
disbursed.
b. henceforth, observe the proper utilization of the 5% calamity fund pursuant to
the pertinent provisions of the DILG Memorandum Circular No. 2012-73, RA
10121, and Section 1, Rule 18 of its implementing rules and regulations.
P3,781,830.97 was not transferred to the Special Trust fund under the account Trust
Liabilities Disaster Risk Reduction and Management (Code 438) in the trust fund
books in violation of Section 21 of Republic Act (RA) 10121 otherwise known as the
51
Philippine Disaster Risk Reduction and Management Act (PDRRMA) of 2010 and
COA Circular No. 2012-002 dated September 12, 2012.
The Philippine Disaster Risk Reduction and Management Act (PDRRMA) of 2010
(RA No. 10121) was enacted to institutionalize the countrys disaster risk reduction and
management system, and to strengthen the capacity of the National Government (NG) and the
LGUs for disaster risk reduction and management through decentralized powers,
responsibilities and resources.
Section 21 of the above Act provides that the present Local Calamity Fund shall
henceforth be known as the Local Disaster Risk Reduction and Management Fund
(LDRRMF) and not less than five percent (5%) of the estimated revenue from regular sources
shall be set aside as the LDRRMF. The balance of the current year LDRRMF shall be
recognized as Special Trust Fund to be spent in the succeeding five years.
Section 5.1.10 of COA Circular No. 2012-002 dated September 12, 2012 provides that
all unexpended/unobligated balance of the Quick Response Fund (QRF) and the DRRMFMOOE shall be transferred to the Special Trust Fund under the account Trust LiabilityDRRM (Code 438) in the trust fund books.
Section 5.1.12 of the same Circular also states that the account Trust Liability-DRRM
in the Trust Fund books shall be used to record transfers of the agencys unutilized QRF and
the DRRMF-MOOE of the previous years, receipts of NDRRMF, DRRMF from other LGUs
and other sources. Subsidiary ledgers shall be maintained for transfers of agencys unutilized
DRRMF to the special trust fund by year of transfer, receipts of NDRRMF by transferring
agency, DRRMF from other LGUs by LGU and other sources by donor.
Section 5.1.13 also of the above Circular provides that the unutilized balance of the
LDRRMF shall be available for use in the disaster risk reduction and management activities as
provided in the Local Disaster Risk Reduction and Management Fund Investment Plan
(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
During the year, the City appropriated five percent (5%) or P21,906,770.15 of the total
estimated revenue from regular sources for its local calamity fund under the account
Maintenance and Other Operating Expenses (MOOE). Of this amount, P18,124,939.18 was
expended to support disaster risk management projects and other non-related activities, as
discussed in separate audit observation. The unexpended MOOE balance of P3,781,830.97 as
of December 31, 2012 was not transferred to the Trust Fund books but carried forward as
continuing appropriation of the General Fund contrary to Section 21 of RA 10121 or the
PDRRMF of 2010.
Management Comment:
It is the advocacy of local government accountants group to strictly adhere what is
mandated by law. Since the implementing guidelines on calamity fund was issued in the later
52
part of 2012 and disseminated in the early part of 2013, our association uniformly reserved the
calamity balance for whatever account with assurance that it will not be used other than the
purpose it is mandated.
Auditors Rejoinder:
Although COA Circular No. 2012-002 was issued only on September 12, 2012, the
Philippine Disaster Risk Reduction and Management Act (PDRRMA) or RA No. 10121 was
issued in CY 2010 yet which mandates the transfer of balance of the current year LDRRMF to
the Special Trust Fund to be spent in the succeeding five years.
We recommend that the City Accountant transfer the unutilized MOOE balance of the
calamity fund amounting to P3,781,830.97 to the Special Trust Fund under the account
Trust Liabilities DRRM (Code 438) in the Trust Fund books to be used solely for 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 saggunian.
The following is the suggested accounting entry:
Particulars
LGU books
General Fund
Trust Fund
Transfer of unexpended QRF Dr. Subsidy to other Funds Dr. Cash
and Mitigation Funds-MOOE Cr. Cash
Cr. Trust Liability-DRRMF
at the end of the year
(with subsidiary for the
source and year)
15. The City failed to monitor submission of liquidation reports on fund transfers to
Local Government Units, National Peoples Organizations/Peoples Organizations,
and National Government Units resulting to their accumulation to P1,424,837.00.
Expenditures that may have been paid by implementing agencies for various
projects during CY 2012 and prior years were not recorded in the books of the City.
Section 4.6 of COA Circular 94-013 dated December 13, 1994 provides that within ten
(10) days after the end of each month/end of the agreed period for the Project, the
Implementing Agencies (IAs) shall submit the Report Checks Issued (RCI) and the Report of
Disbursement (RD) to report the utilization of the funds. Only actual project expenses shall
be reported. The reports shall be approved by the Head of the IAs.This Circular shall apply to
financial transactions of National Government agencies and instrumentalities involving grant,
utilization and liquidation of funds transferred to implementing agencies.
COA Circular No. 2007-001 dated October 25, 2007also provides for the guidelines in
the granting, utilization, accounting and auditing of the funds released to Non-Governmental
Organizations/Peoples Organizations (NGOs/POs). Section 5.4 thereof provides that within
sixty (60) days after the completion of the project, the NGO/PO shall submit the final Fund
Utilization Report certified by its Accountant and approved by its President/Chairman of the
53
Government Organization (GO), together with the inspection report and certificate of project
completion rendered/issued by the GO authorized representative, list of
project/funds/goods/services received. The validity of these documents shall be verified by the
internal auditor or equivalent official of the GO and shall be the basis of the GO in recording
the fund utilization in its books of accounts. These documents shall support the liquidation of
the funds granted to the NGO/PO.
The fund Utilization Report is a document showing the Summary of Expenses
incurred in the implementation of the project for a given period of time.
Audit disclosed that receivables out of the funds transferred to local government units,
NGOs/POs and national agencies totaled P1,424,837.00 as at the end of the year. Of the said
amount, P1,324,837.00 remained unliquidated for over 1 year to over 9 years and P100,000.00
for over 91 days to 365 days. This is due to the failure of several grantees to submit the Fund
Utilization/liquidation Reports as required under COA Circular Nos. 2007-001 and 94-013 as
shown in the table:
The foregoing deficiencies resulted in the accumulation of unliquidated balances

which considering the lapse of time could have already been expended/utilized. These are
indicative breakdowns in the enforcement of controls in the grant of fund assistance and
monitoring of liquidation. Moreso, the Citys statement of income may present unreliable
54
data that could possibly mislead management to use the reported income for budgetary
allocations.
We recommend that the City Government make concrete efforts by sending demand
letters to LGUs, NGOs/POs and NGAs for the immediate settlement of their outstanding
balances and improve the present monitoring and control measures on the liquidation of
fund releases. For future grants of financial assistance to LGUs, NGOs/POs and NGAs,
strict adherence to COA Circular Nos. 2007-001 and 94-013 is enjoined to ensure prompt
liquidation thereof.
Management Comment:
The accounting office sent demand letters to the NGOs/POs and NGAs but did not
receive any reply from them. Regarding the Liga ng mga Barangay and Cebu Arts
Foundation, the amounts transferred referred to the current year since additional fund transfers
will not be granted unless and until previous transfers shall have been liquidated.
Auditors Rejoinder:
Copies of demand letter sent to NGOS/POs and NGAs as alleged by the Accountant
could not be validated since these were not furnished to COA.
16. The non-recording of disbursements totalingP1,087,945.89 in the books of
accounts, due to the failure of the City Treasurer to submit vouchers and supporting
documents comprising of current and prior years transactions to the Accounting
Office, may result in the misstatement of financial statements of the City and
prevent concerned parties to review the validity, legality, and propriety of subject
disbursements, in violation of Section 4 (6) of Presidential Decree (PD) 1445.
Records showed that the City of Talisay paid to various creditors One Million Eighty
Seven Thousand Nine Hundred Forty Five Pesos & 89/100 (P1,087,945.89) comprising of
forty two (42) checks which remained unrecorded in the books of accounts for lack of
disbursement vouchers and supporting documents. Some of these refer to prior years
transactions since 2003 as shown in the following table.
55
56
According to the City Treasurer, the vouchers together with the check were released
by the staff of the City Mayors Office to the payee to acknowledge receipt of payment but
were never returned to the City Treasurers Office. It was further found out that releases of
these checks were not done by the Citys Disbursing Officer hence, the loss of the herein
mentioned vouchers. Further, it was noted that all these checks were already negotiated with
the depository bank.
Such practice resulted to the loss of the disbursement vouchers and supporting
documents which recurrence should be prevented to avoid audit disallowance in the future. It
is stressed that twenty one (21) Notices of Suspensions were already issued in 2012 for the
non-submission of vouchers and supporting documents.
The non-recording of these transactions in the books, affects appropriate assets,

liabilities, equity and expense accounts.
Management Comment:
Management promised to facilitate the retrieval of vouchers and submit the same to
the Accounting Section for proper recording.
a. instruct the City Treasurer to facilitate the retrieval of vouchers and their
supporting documents from the concerned personnel and submit them
immediately to the Accounting office for appropriate recording;
b. henceforth, direct the City Treasurer to institute effective measures to streamline
the releasing of payment or checks to avoid loss of disbursement vouchers and
supporting documents;
c. impose appropriate sanctions against those responsible for the loss of
disbursement vouchers and supporting documents and those officials who are
signatories to the check will be held jointly and severally liable.
17. The distribution of City Health Cards to indigent beneficiaries who are also
Philhealth members resulted in the double grant thereof and incurrence of unpaid
obligations to Talisay District Hospital amounting to P7,026,980.75 as of December
31, 2012.
The term irregular expenditure signifies expenditure incurred without adhering to
established rules, regulations, procedural guidelines, policies, principles or practices that have
gained recognition in laws. A transaction conducted in a manner that deviates or departs
from, or which does not comply with standards set is deemed irregular. A transaction which
fails to follow or violates appropriate rules of procedures is, likewise, irregular.
57
Section 85(1) of PD 1445 states that no contract involving the expenditure of public
funds shall be entered into unless there is an appropriation therefor, the unexpended balance
of which, free of other obligation, is sufficient to cover the prosed expenditure.
The City has a Health Card Program which is one of the financial assistance given to
its indigent constituents. However, records showed that the City still has an accumulated
unpaid obligations to Talisay District Hospital (TDH) in the total amount of Seven Million
Twenty Six Thousand Nine Hundred Eighty Pesos and 75/100 (P7,026,980.75) as of
December 31, 2012, broken down as follows:
Unpaid bills from Talisay District Hospital (TDH)
Year
Amount
2011
P1,866,377.50
2012
5,160,603.25
Total
7,026,980.75
The City indulged in the excessive distribution of health cards without considering
availability of budget appropriation for this purpose. Also, there was a slow availment of
benefits from Philhealth for which the City paid premiums of P2 million in 2011 and another
P2 million in 2012. Moreover, Philhealth members also availed of the Citys Health Card
Program resulting in the double availment of the same benefits and consequently, wastage of
government resources.
Beneficiaries preferred the Healthcards whenever they are hospitalized/treated at the
Talisay District Hospital for documentary requirements are easier to comply compared with
those of the Philhealth.
The officers at TDH said that in the second semester, a Philhealth officer was assigned
at their hospital to assist beneficiaries in their claims. However, the total bills for
hospitalization and medicines of the same hospital remained at P7,026,980.75for CY 2011
and 2012.
The City could have prevented the irregular use of government funds, had it required
the availment of Philhealth benefits first before the use of Healthcards. It should have
properly monitored and regulated the distribution of these health cards in order to maximize
use of the funds provided by the City for its health services.
Management Comment:
Management promised to comply with the recommendation.
We recommend that Management direct the Budget Officer to include in its yearly
appropriation the amount of medicine and hospital bills under its Health Card Program
in conformity with the aforecited regulation. Moreso, instruct the Social Welfare Officer
58
to see to it that all the indigent beneficiaries should first avail of Philhealth benefits
before they are given Health cards to reduce expenditures on this program. Further, a
monitoring system should be set up to regulate distribution of the same health cards to
ensure that expenditures thereof would not exceed the annual budget appropriation.
18. Various reconciling items totaling P489,779.00in the bank reconciliation statement
since 2004 are still carried in the report and left unadjusted as of December 31,
2012 due to inability of management to determine the nature of transactions and
secure proper documentation as basis for adjustments in agency books contrary to
Section 58 and 74 of PD 1445.
Bank reconciliation is a process of bringing into agreement the cash balance per books
of the agency and cashbook balance per bank statement.
Section 58 of PD 1445 provides the examination and audit of assets with a view to
ascertaining their existence, ownership, and encumbrances as well as the propriety,
determining their agreement with records, proving the accuracy of such records and
evaluating the adequacy of controls over the accounts.
While Section 74 of the above decree also provides that the head of the agency shall
see to it that reconciliation is made between the balance shown in the reports and the balance
found in the books of the agency.
Review of bank reconciliation statements in all funds as of December 31, 2012
disclosed various reconciling items totaling P489,779.00.
59
60
The reconciling items were repeatedly presented in the monthly bank reconciliation
statements since 2004, thus making the balances of the cash in bank accounts inaccurate and
unrealistic. These deficiencies could have been adjusted had the proper documentation been
secured so that the Accounting Section could have taken up the necessary adjustment in the
books immediately or upon its discovery.
Failure to record these reconciling items within the accounting period resulted to
overstatement/understatement of income and expense account during the period they were
actually incurred and the cash in bank balances per book.
We recommend that management direct the Accounting Section to secure proper
documentation so that appropriate adjustments can be taken up in the agency books.
Management Comment:
Reconciling items cannot be taken up unless there are documents to support the
transactions. For this purpose, the Accounting Office coordinates with the City Treasurers
Office in order to get hold of supporting documents.
19. The reliability of the balances of the Property, Plant and Equipment accounts
totaling P1,096,068,659.31could not be ascertained due to a) inability of
management to conduct physical inventory count; and b) nonpreparation/maintenance of Property, Plant and Equipment Ledger Card by the
Accounting Section and Property Cards by the General Services Office.
Section 353b of the GAAM, Volume III on Government Auditing Standards and
Procedures requires the comparison of recorded accountability with existing assets to
determine whether the actual assets agree with the recorded accountability. Any discrepancy
should be investigated in accordance with existing regulations and appropriate action taken
thereon.
The reliability of the Property, Plant and Equipment (PPE) accounts balances totaling
P1,096,068,659.31 which represents 83.64% of the total assets of the city totaling
P1,310,437,300.61, could not be ascertained due to various significant/material deficiencies
and errors noted in the analysis of these accounts as follows:
a. Non-conduct of PPE Inventory
P1,096,068,659.31
Section 490 of the GAAM, Volume I states that physical inventory-taking is an

indispensable procedure for checking the integrity of property custodianship. In all cases, the
physical inventory-taking which is required semi-annually or annually should be regarded
with importance.
Section 124 of NGAS Volume I states that the local chief executive shall require
periodic physical inventory of supplies or property. Physical count of property, plant, and
equipment by type shall be made annually and reported on the Report on the Physical Count
61
of Property, Plant and Equipment (RPCPPE). This shall be submitted to the Auditor concerned
not later than January 31 of each year.
Interview with the General Services Officer (GSO) disclosed that due to time
constraints and lack of personnel, they were not able to conduct physical inventory count of
PPE for CY 2012 but submitted the CY 2011 report instead. Further, the GSO promised to
conduct the inventory count the soonest possible time and submit the report thereon.
Review of the CY 2011 property inventory report submitted disclosed that in some
instances, the model, serial number, acquisition date, value and accessories of IT equipment
were not indicated in the report which may cause difficulty in identifying the properties during
the count. It is also emphasized that although an inventory report for CY 2011 was submitted,
yet there was no actual inventory count conducted in some of the offices, thus the validity and
reliability of the accounts remain uncertain. Moreso, there is no assurance that all properties
recorded in the books are still existing and serviceable and that properties existing are duly
recorded in the books thus, increasing the risk of loss of these properties.
b. Non-preparation/maintenance of Property and Accounting Records
Section 114 of NGAS Manual, Volume I also provides that 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 account in the inventory
control account in the general ledger.
The General Services Officer (GSO) shall likewise maintain property cards for
property, plant and equipment 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.
Verification of records showed that the GSO and the Accounting Unit do not maintain
Property Cards and Property Ledger Cards, respectively. The Accounting and GSO Sections
are now in the process of preparing the PPELC and Property records, respectively, to facilitate
reconciliation.
We recommend that Management implement the following corrective measures to
ensure better internal control thereat and to present the correct financial condition of
the PPE accounts:
a. direct the Inventory Team to facilitate the conduct and submission of physical
inventory count and reconcile the report with the records of the Accounting and
GSO Sections to determine their existence, status/conditions and whereabouts of
the assets;
b. advise the inventory team to use property tags during the count to facilitate
identification and location of the PPE;
62
c. advise the inventory team to submit a report for whatever assets found in station
during the count but not recorded per books so that these could be taken up in
the agency books for control purposes and pinpoint accountability in case of loss;
d. direct the GSO and Accountant to maintain Property Cards and Equipment
Ledger Cards, respectively, to ensure the accuracy and reliability of the property
and accounting records;
e. provide adequate information on the inventory reports such as the model, serial
number, cost, conditions and property number to facilitate identification during
the count;
f. require clearance from retired/resigned officials and employees to clear them of
their property accountability and cancel the corresponding Acknowledgement
Receipt for Equipment (ARE) for the returned items.
Management Comment:
The General Services Officer justified that they had already started the conduct of
actual inventory count of PPE and property tags are being used but the preparation of report is
still on-going.
20. The total balance of Inventory Accounts of P21,696,313.76 is unreliable because of
a) net unreconciled difference of P18,396,640.98 between the balance per books and
inventory reports; b) unrecorded issuances caused by the non-preparation of
Summary of Supplies and Materials Issued thereby overstating the inventory
accounts and understating the related expenses; c) absence of supplies ledger cards
by the Accounting Section and stock cards by the General Services Office.
Section 114 of the Manual on NGAS for LGUs Vol. I, provides that the chief
accountant shall maintain the perpetual inventory records comprising of Supplies Ledger
Cards (SLC) for each commodity/stock while the General Services Officer shall maintain
Account
General Fund
SEF
TF
Per Invty
Difference
2,814,860.29
286,539.15
2,528,321.14
337,575.00
3,713,135.50
258,476.99
-0-
79,098.01
3,713,135.50
4,725,375.30
191,595.00
4,533,780.30
Office Supplies
Invty
2,803,959.29
AF Inventory
Drugs and
Medicines Invty
337,575.00
1,742,830.50
Medical and
Dental Supplies
Invty
4,725,375.30
Other Supplies
Invty
5,678,090.26
3,291,244.50
1,136,032.91
10,105,367.67
2,563,061.64
7,542,306.03
15,287,830.35
3,302,145.50
3,106,337.91
21,696,313.76
3,299,672.78
18,396,640.98
Total
10,901.00
Total
1,970,305.00
63
stock cards for supplies. The balance per stock cards should always reconcile with the ledger
cards of the accounting unit.
Section 121 of the Manual on NGAS for LGUs Vol. I, provides that issuance of stocks
shall be supported with duly signed requisition and issue slip (RIS) in which the General
Services Officer (GSO) shall consolidate the weekly RIS using the Summary of Supplies and
Materials Issued (SSMI). The SSMI together with the original copy of RIS shall be submitted
to the Accountant who shall compute the costing of supplies and based on these documents a
Journal Entry Voucher (JEV) is prepared to record the expenditures using the appropriate
expenditure accounts.
Audit disclosed that the balances of Inventory accounts totaling P21,696,313.76 is
unreliable due to the following deficiencies:
a. Unreconciled difference of P18,396,640.98 between the balance per books of the
Accounting Section and per inventory reports submitted by the General Services
Office (GSO)/different offices due to failure of both offices to conduct reconciliation
of the accounts as shown hereto
b. Unrecorded issuances caused by the non-preparation of the Summary of Supplies and
Materials Issued (SSMI) as disclosed in our interview with GSO. The SSMI is the
basis by the Accountant in the preparation of the journal entry voucher in recording the
issuances.
c. Absence of Supplies Ledger Cards and Stock Cards;
Records disclosed that the Accounting Section failed to maintain the Supplies Ledger
Cards in some of the accounts while the GSO also did not maintain the Stock Cards contrary
to the above mentioned regulation.
a. instruct the Accountant and General Services Officer to reconcile the accounting
and property records and any discrepancy be immediately verified and adjusted
to reflect the accurate value of inventories;
64
b. require the General Services Officer/designated custodians to prepare the SSMI

for issued inventories to end-users based on duly approved Requisition and Issue
Slips and submit the same to the Accountant for recording in the books;
c. direct the Accountant and General Services Officer to prepare the Supplies
Ledger Cards and Stock Cards, respectively, in compliance with Section 114 of
the NGAS Manual, Volume 1.
Management Comment:
The General Services Officer justified that she regularly submits the SSMI to the
Accounting Section but these were not recorded in the books by the Accountant.
21. Claims for daily wage honorarium of Job Order Contract Employees who are
assigned in the different offices of the City were not supported with proper
individual accomplishment reports but only signed accomplishment reports by heads
of offices thus the validity and propriety of disbursements may prove doubtful in
violation of Section 4(6) of Presidential Decree (PD) 1445.
The City has presently in its employ 1,225 Job Order (JO) employees as of December
31, 2012 assigned in the different offices and most of them are under the quota system of
outgoing officials. Payments of their honorarium are charged to the budget of the different
offices of the City.
Review of payrolls for daily wage claims of job order contract employees who are
assigned in the different offices of the City showed that there were no attachments of
individual accomplishment reports. Attached thereto was signed accomplishment report by
the City Mayor and different heads of offices stating therein that the JOs appearing in the
payroll have rendered the required services for the specific period. At times attached are only
their duties and responsibilities signed by the different heads of offices. Subject claims
therefore, lack the proper documentations in support thereof in violation of Section 4 (6) of
PD 1445.
Verification of reports signed by heads of offices and confirmation conducted
disclosed discrepancies in the entries therein like the Talisay Rescue Emergency Assistance
Team (TREAT II) JOs allegedly assigned to COA. It showed that there were 9 to 11 JOs
assigned thereat who takes charge in the filing of vouchers but in reality these personnel never
reported to COA for duty. It was learned from the City Budget Officer that this TREAT II Job
Orders are actually reporting in different offices but charging of their honorarium is taken
from the budget of COA.
The JOs are daily paid workers who have to render eight (8) hours per day service at
the rate of P220.00, P253.85 and P300.00.
65
With the foregoing condition, the extent of services rendered by the subject employees
cannot be evaluated properly on account of the failure of management to institute proper
controls to effectively monitor their accomplishment to protect the interest of the government
and discourage those who wanted to take advantage of the situation.
Management Comment:
Management promised to immediately comply with the recommendation.

a. require the head of the department where the job orders actually rendered
services to explain why they signed the accomplishment reports which entries
therein differs from the actual accomplishment actually performed by the JOs;
b. direct the Accountant to refrain from processing daily wage claims and/or
honorarium of Job Orders without individual accomplishment reports duly
verified by the head of office where they are assigned and reporting for duty.
Gender and Development Program
The City Government allocated in its Annual Budget for CY 2012, in compliance with
Joint Circular No. 2004-1 dated April 5, 2004, the amount of P30,910,920.00 or 5.56% of the
total appropriation of the City of P555,570,352.35 to be implemented by the different offices
under the mainstreaming program. During the year, the amount of P27,843,418.34 or 90.08%
was expended for GAD related activities.
DBM/NEDA/NCRFW Joint Circular No. 2004-1 mandates the earmarking of at least
5% of the total agency budget appropriations for GAD activities.
Summary of Issued NSs/NDs/NCs
The unsettled disallowances and suspensions as reflected in the Statement of Audit
Suspensions. Disallowances and Charges (SASDC) as of December 31, 2012 amounted to
P15,384,736.90 as shown in the table below:
Beginning
Balance as of
12/31/2011
Issued this
period
JanuaryDecember,
2012
66
Settled this
period JanuaryDecember, 2012
Ending
Balance as 0f
December 31,
2012
Notice of Suspension
Notice of Disallowance
Notice of Charge
Total
1,642,483.76
10,409,106.75
-012,051,590.51
4,078,131.07
790,449.54
-04,868,580.61
1,472,280.00
63,154.22
-01,535,434.22
4,248,334.83
11,136,402.07
-015,384,736.90
PART III - STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEARS AUDIT

RECOMMENDATIONS
Audit Observation
1
Recommendation
Ref
Hencef
orth,
review
and
evaluation
of
documents pertaining
to lot acquisitions and
the
subsequent
payments
thereof
should be delegated
and/or assigned to the
City Legal Officer to
ascertain the validity
and legality of titles and
other
supporting
documents.
AAR
CY
2011
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
On lot acquisitions
a) Titles of lots acquired by
the City of Talisay
totaling Two Hundred
Fifty Six Million Four
Hundred
Forty
Two
Thousand Ninety Two
and
39/100
Pesos
(P256,442,092.39) were
not transferred yet in
the name of the City due
to the questionable and
lack of certain supporting
documents and the nonappropriation of amount
for the payment of
capital gains taxes and
other fees, among other
reasons, required to
effect transfer of title
thereby non-ascertaining
the validity and legality
of
the
acquisitions
thereof.
b) Unjustifiable delay on the
transfer of ownership of
fully paid lots to the City
particularly the fourteen
(14) lots for socialized
housing projects with a
total cost of P4.3M had
also caused the delay in
the
processing
of
requirements of projects
take out by the Social
Housing
Finance
Corporation for which
a)
It must be stressed that

under
the
2009
Revised
Rules
of
Procedures of the
Commission on Audit,
all
officers/persons
participating
in
the
processing, approving
and paying invalid,
illegal and questionable
or disputable claims are
jointly and solidarily
liable and accountable
of the full amount paid
for such transactions.
b)
Direct
the
City
Assessor
or
any
persons assigned by
the City Mayor on lot
acquisitions to turn over
to the City Legal Officer
67
Partially
Impleme
nted
Review and evaluation

of documents for lot
acquisition was already
transferred from the
City Assessor to the
City Legal Division.
However, during the
year
payments
of
newly acquired lots
were
still
effected
despite the absence of
undisputable proof of
ownership/documents
evidencing title thereof.
CY
2012
Annual
Budget includes 25M
appropriation for capital
gains tax, acquisition of
lots and payment of
amortization for some
unpaid lots.
To date, Summary
Report
of
Lot
Acquisitions
with
complete
data/information cited
under
finding
no.1
(AAR 2011) are not
submitted to the City
Legal Officer, despite
the lapse of one year
from the issuance of
the AOM pertaining
thereto.
Failure
to
thoroughly
review
supporting
documents
prior
to
payment.
Audit Observation
Recommendation
the City could have

already
earned
or
received the return of
investment
of
lot
acquisition.
In effect,
award of individual titles
to
qualified
lot
beneficiaries
was
likewise delayed.
all
documents
supporting lots fully
paid as of December
31, 2011 but titles
thereto are not yet
processed
and/or
transferred to the City
of Talisay, for his review
and
eventually
processing of Transfer
Certificate of Titles to
the City Government.
c) Due to the absence of

complete
information
and/or data on lot
acquisitions
in
the
subsidiary
records,
property ledger cards
and reports of the
Accounting
Division,
General Services Office,
and the City Assessors
Office, the exact total
area and number of lots
totaling P292,607,009.44
could not be ascertained
as of December 31,
2011. Further, unpaid
amortizations of lots
acquired on instalments
for socialized housing
and
sanitary
landfill
totaling P35,272,940.20
were not booked as of
December 31, 2011
thereby
understating
Land
and
Accounts
Payable as of balance
sheet date.
Ref
For the above purpose,

the
City
Assessor
should be required to
prepare a summary
report of lot acquisitions
as of December 31,
2011 and furnish copies
of this report to the City
Legal Officer, the City
Accountant,
the
General
Services
Officer, including the
City Auditors Office
with
the
following
information/data:
1)
lot
number and total lot

area in square meters;
2)
specific
location,
by
barangay, and by sitio;
3)
lot description;
4)
previous lot owner;
5)
date/year acquired
6) actual or intended use
of lot; Tax Declaration
and Transfer
Certificate of Title (TCT)
or Owners Certificate
of
Titles
(OCT)
number and
7)
lot number and total lot
area in square meters;
8)
specific
location,
by
barangay, and by sitio;
9)
lot description;
10)
previous lot owner;
11)
date/year acquired
12)
actual or intended use of lot;
13)
Tax
Declaration
and
Transfer Certificate of
Title (TCT) or Owners
Certificate of Titles
68
Status
of
Impleme
ntation
Management
Action
Some lots are still
without SLs. Likewise,
Property cards for lot
acquisitions are not
maintained
by
the
GSO.
Original copies of lot
titles and other related
documents are still in
the custody of the City
Assessor due to the
unavailability of safety
vault in the Office of
the GSO.
Reason for
Partial/Non
Implement
ation
Audit Observation
Recommendation
Ref
(OCT) number and

information
whether
transferred to the City
of Talisay or not;
14)
For
15)
Any
lots
acquired
on
installment
basis,
information on the
number and amount
of installment and
unpaid balance as of
cut-off date should
also be included
other
relevant
information pertaining
to the lot should be
indicated under the
Remarks column.
c)
The
City Accountant should
maintain
updated
subsidiary ledgers and
RPLC in accordance with
Section 474 Article IV of
RA 7160 and Section 15
of the NGAS Manual for
Local Government Units
(LGUs, Volume II), with
same
information/data
stated above. Further, we
recommend that monthly
or yearly financial reports
for land account among
others
should
be
supported with schedules
as required.
d)
The
General Services Officer
as the custodian of the
Citys real and other
properties should keep
copies of all Transfer
Certificate of Tiles (TCT)
or Tax Declaration, as the
case may be, for all lots
acquired/owned by the
City Government. Also, it
is recommended that she
should maintain and keep
an updated record and
property cards of lots and
other real properties in
accordance with Section
375 Book 1 of RA 7160
and Section 45 of the
NGAS Manual for LGUs.
Moreover, we recommend
that actual inventory of
lots should be conducted
and a report thereon
submitted annually to
ascertain the present
condition, status or actual
use of lots involved.
69
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
e) For untitled lots which were

already paid, funds should
be appropriated for the
processing fees including
capital gains and other
fees for the purpose of
ensuring transfer of titles
to the City.
f)
Further,
unpaid
amortizations
on
lots
acquired for socialized
housing
and
sanitary
landfill
aggregating
P35,272,940.20 as of
December
31,
2011
should be booked in 2012
to correct the balances of
the said accounts.
g) Henceforth,
we
recommend that there
should be proper planning
on lot acquisitions so that
the intended projects
would be implemented
within the reasonable
time. Further, contracts
involving lot acquisitions
should not be made
without appropriation and
available
funds
in
consonance with Section
85 (1) of Presidential
Decree 1445, to avoid
audit
suspension/
disallowance
of
the
transaction.
Unreconciled balances as of
December 31, 2011 on
Property,
Plant
and
Equipment per books and
inventory report amounted
to P123.3 million due to the
failure in maintaining the
perpetual inventory records
in the Accounting Division
and property cards in the
General Services Office, in
violation of Section 114 of
NGAS Manual and Section
375 of RA 7160.
It is recommended that the

Accounting and General
Service
Office
maintain
close
coordination
and
reconcile
their
records
regularly so that differences
could
be
immediately
corrected. Observe strictly
the provision of Section 114
of the NGAs Manual relative
to the maintenance of
property ledger cards to
facilitate reconciliation of
records and for the General
Service Office to keep
complete records of all
properties of the city under
her control and custody for
her
information
and
protection.
AAR
CY
2011
and
2010
Not
Impleme
nted
For CY 2012, the GSO

was
not
able
to
conduct
physical
inventory on PPE due
to time constraint and
lack of personnel but
promised to do it by CY
2013.
This is a
recurring
audit
observation
that the City
could
not
remedy due
to absence
of records
of
prior
years both
at
the
Accounting
and
at
GSO.
Grant of cash incentives to

1,231 city hall personnel
who are on Job Order Status

1,231 personnel hired on
Job Order Status by the
City of Talisay be required
AAR
CY
2011
and
Not
Impleme
nted
Although the practice

had been stopped for
CY 2012 yet the
amount paid to JOS
Contracts of
some of the
JOS were
no
longer
70
Audit Observation
Recommendation
Ref
totaling P6,438,000.00 was

without legal basis in
violation of Rule XI of CSC
Memorandum Circular No.
40, series of 1998; thus,
resulting
to
illegal
disbursement
of
public
funds.
to refund the amount

granted
to
them
in
December 2011 as cash
incentives.
Otherwise,
officers/persons
participating
in
the
processing, approving and
paying such illegal and
questionable claims should
be held jointly and solidarily
liable and accountable of
the full amount paid for
such
transaction
as
provided for under Section
103 of PD1445.
2010
Expenditures
totaling
P6,335,320.60 representing
payment of wages of
personnel who are on job
order
status
and
improvement of parking lot
in the New Tabunok Public
Market
were
charged
against the 5% Reserved for
Calamity Fund in violation of
Section 1, Rule 18 of
Republic Act No. 10121 also
known
as
An
Act
Strengthening the Philippine
Disaster Risk Reduction and
Management
System;
thereby, resulting to illegal
disbursement
of
public
funds.
The
abovementioned
expenditures
should be
refunded by the respective
payees
and/or
the
persons/officers responsible
for
the
processing,
approving and paying said
unlawfull and questionable
disbursements as required
under Section 103 of the
State Audit Code of the
Philippines.
AAR
CY
2011
The City has still unpaid

medicines and hospital bills
covered by its Health card
Program to the Talisay
District Hospital totaling by
P4,559,882.75
as
of
December 31,2011 thereby
understating its accounts
payable
and
related
expense accounts.
The Budget Office should

include
in
its
yearly
appropriation the correct
amount of medicine and
hospital bills under its
Health card Program in
conformity
with
the
aforecited
regulation.
Further, instruct the Social
Welfare Officer to see to it
that
all
the
indigent
beneficiaries should first
avail of Philhealth benefits
before they are given
Health cards to reduce
expenditures
on
this
program.
On the Procurement of
Goods and Services-
a) Procurements of supplies
and materials during the
year were not done
through
competitive
Status
of
Impleme
ntation
Management
Action
were not refunded.
Partially
Impleme
nted
This pertains to slope

protection
at
the
parking area at New
Tabunok Public Market.
Program of Work now
corrected.
Refunds
will
be
implemented
after
election and issuance
of
Notice
of
disallowance.
Reason for
Partial/Non
Implement
ation
renewed.
Manageme
nt
should
appropriate
funds from
GF, direct
the budget
officer and
Accountant
for proper
recording of
adjustments
affecting the
transactions
, and
restitute the
amount to
the calamity
fund which
was
depleted
due
to
improper
charging.
It is recommended that
procurement of supplies and
materials
should
be
centralized and not by
department and observe the
71
AAR
CY
2011
AAR
CY
2011
Fully
Impleme
nted
Cannot be treated as
accounts payable since
there
was
no
appropriation for the
purpose, however a
supplemental budget
had
been
done
sometime in November
2012
for
partial
payment.
Partially
Impleme
nted
If supplies are not

found in DBM depot,
the agency procures
goods thru shopping.
Procurement is done
It is more
economical
if purchase
in
bulk
instead of
Audit Observation
bidding in violation of
Sections 10, Article IV of
RA 9184 and Section 48
of Article XVI of the
same
Act;
thereby
resulting to irregular
practices in procurement
and disbursement of
public funds.
Recommendation
Ref
following measures to avoid

audit
suspensions
and
disallowances
on
these
transactions:
ia
1)
Requisitions of supplies
and materials should be
collated by the General
Service Officer from
each
department;
Provided, that such
supplies are included in
the
Annual
Procurement Program
and
the
maximum
quantity thereof does
not
exceed
the
estimated consumption
corresponding to a
programmed
threemonth period to avoid
overstocking.
2)
TThe Budget Office should
hasten the preparation
of the Certificate of the
Availability
of
Appropriation for the
quarterly
purchase
requests of different
departments
and
offices for supplies to
allow the GSO to
consolidate all items
requested
by
all
departments and make
possible bulk orders for
items
purchased
outside of the PS-DBM.
There is then a need to
schedule
the
submission of quarterly
purchase requests from
all departments and
other offices to the
Budget Office who
should also see to it
that all PRs are acted
upon within the most
reasonable time and
submit them together to
the
GSO
for
consolidation so that
proper
mode
of
procurement could be
determined and price
advantage thru bulk
orders can be obtained.
This is, of course, only
for items purchased
outside of the PS-DBM.
3) The BAC should observe
72
Status
of
Impleme
ntation
Management
Action
by office since it is
more effective to avoid
overstocking.
Reason for
Partial/Non
Implement
ation
by office.
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
the proper procurement

procedures and ensure
that awards be given to
the bona fide suppliers
to ensure that prices
obtained
are
advantageous to the
government.
4.
The GSO should be

provided a stockroom
for supplies and other
items which this office
needs to stock for
better service to the
different departments
and
offices,
make
possible bulk orders to
get better prices, and
avoid
the
irregular
purchases
to
middlemen who are
now the Citys regular
suppliers.
The barangay treasurers

failed to observe the proper
documentation in the
procurement of food
supplies totaling
P1,368,542.85 for the
supplementary feeding
program in day care centers
in violation of Section 52 of
Rule XVI of the
Implementing Rules and
regulations of Republic Act
9184; thus, resulting to
irregular disbursement of
public funds.
The barangay treasurer

should see to it that
procurement
of
food
supplies be supported with
proper documentation and
should strictly observe
compliance to rules and
regulations in accordance
with Rule XVI of RA 9184
to avoid suspensions or
disallowance in audit.
Fully
Impleme
nted
Had complied with the

recommendation.
The City of Talisay did not

procure medicines and
vitamins from the DOH
Botica and/or the PITC
Pharma which are offering
much lower prices than
those procured by this City
thereby violating the
regulation set forth under RA
9184 and losing
opportunities to serve more
of its indigent beneficiaries
and disadvantageous to the
government as the agency
did not maximize the use of
their funds in procuring
medicines and vitamins for
its rural health units.

agency
should
secure
medicines and vitamins for
its rural health units and
indigent constituents at the
DOH Botica and/or PITC
Pharma to get the most
advantageous price for the
government and to be able
to serve more indigent
beneficiaries
with
the
existing funds available for
the Citys health programs.
Not
Impleme
nted
Promised to comply
with
the
recommendation.
The City of Talisay paid

honoraria in the total amount
The City should stop the

payment of honoraria to
Partially
Impleme
The City had stopped

paying the honoraria to
73
AAR
CY
Failure
to
comply with
10
11
Audit Observation
Recommendation
Ref
of P129,500.00 to six (6)

prosecutors of the Regional
Prosecutors Office for the
period January to July 2011
which were suspended in
audit as these officers did not
have the specific
order
assigning them to this City in
violation to the regulation set
forth under Section 458 (xi) of
the Local Government Code
or
Republic Act
7160.
Further, their claims were not
supported with certification/s
from
the
City/Municipal
Accountant/s of the other
LGUs where the same benefit
was paid, which is required to
determine that the total
honoraria paid to the subject
regional office prosecutors
are within the limits as
provided under Section 16 of
Republic Act 10071.
prosecutors who are not

officially assigned to this
agency in conformity with
the regulation set forth
under Section 458 (xi) of
the Local Government
Code or Republic Act 7160
and
the
amount
of
honorarium
should
be
limited to that set forth
under Section 16 of
Republic Act 10071.
2011
Status
of
Impleme
ntation
nted
Recording of collections and

deposits on the Cashbook for
Cash in Vault account under
the General Fund maintained
by the City Treasurer was not
done properly in violation of
Section 26, Volume II of the
Manual
on
the
New
Government
Accounting
System for Local Government
Units. Further, numerous
errors were found in the
mathematical computations
on footings and balances;
thereby,
rendering
the
cashbook useless as the
balances reflected therein are
unreliable.
The City Treasurer should

see to it that the Cashbook
entries (collections and
AAR
CY
2011
Fully
Impleme
nted
Complied
with
recommendation.
Collections
derived
from
rentals of two (2) buses
owned of the Talisay City
government and use of the
Peoples Hall of the City Hall
were not supported by an
ordinance
from
the
Sangguniang
Panlungsod
The
Sangguniang
Panlungsod should pass
an ordinance authorizing
the collection of bus and
room rentals and to
prescribe the rental rates
and operational procedures
thereof in compliance with
the aforecited regulation.
AAR
CY
2011
Fully
Impleme
nted
SP ordinance relative
hereto already issued.
Management
Action
prosecutors but the
amount paid had not
been refunded.
the
deposits) are properly

recorded, maintained and
balanced at the end of the
day. She should base her
recording of deposits on the
bank validated deposit slips
attached to the Report of
Collections and Deposits.
Further, she should write
legibly in ink all the totals
and the balances which shall
be carried forward as
opening balances of the
cashbook for the next day.
Most importantly, footings
and cash balances should
be correctly computed so as
to render the said cashbook
useful and cash balances
reflected therein reliable.
Moreover, cash balance
reflected therein should be
checked at least monthly by
the City Treasurer with the
controlling figure in the
general ledger to insure the
correctness of its balance.
74
Reason for
Partial/Non
Implement
ation
recommend
ation.
Audit Observation
Status
of
Impleme
ntation
Recommendation
Ref
Management
Action
The
abovementioned
persons should be made to
refund the excess payment
made as only one claim
can be allowed to each
payee on this expenditure.
Otherwise, officers/persons
participating
in
the
processing, approving and
paying such questionable
claims should be held
jointly and solidarily liable
and accountable of the full
amount paid for such
transaction as provided for
under Section 103 of
AAR
CY
2011
Fully
Impleme
nted

recommendation.
Reason for
Partial/Non
Implement
ation
setting the purpose of the

said business activities, the
rental rates, and other
matters in the handling of the
said
revenue
generating
venture in violation of Section
305.c
of
the
Local
Government Code of 1991 or
RA 7160.
12
Grant of practice and meal

allowances
to
certain
personnel at more than one
time during the same period
in violation of COA Circular
No. 85-55A which resulted to
double compensation; hence
payment thereof is irregular.
PD1445.
13
Fuel consumption of motor

vehicles were not properly
monitored thru the use of trip
tickets hence defeating the
purpose for which this is
required under COA Circular
No. 75-6.
Require
the
officials
concerned
to
strictly
implement the use of duly
accomplished trip tickets for
every official trip to facilitate
monitoring
of
gasoline
consumption.
AAR
CY
2011
Fully
Impleme
nted

recommendation.
14
Of the total repairs and

maintenance expended by
the City of Talisay for CY
2010 for motor vehicles and
heavy equipment totaling
P21.6 million, P17.9 million
or 82.8% were paid to
SSVF-ADD
Trading,
of
which P11 million were
audited and were all found
paid
without
proper
documentation in violation to
Rule
XVI
of
the
Implementing Rules and
Regulations of Republic Act
9184; thus, resulting to
irregular disbursement of
public funds.

General Services Office
(GSO) and Bids and
Awards Committee (BAC)
should be made to explain
why SSVF-ADD Trading
was considered eligible to
obtain repair contracts and
purchase orders for spare
parts
with
the
City
Government of Talisay
despite questions of its
actual
existence
and
irregularities found in the
canvass/bidding
processes.
AAR
CY
2010
Not
Impleme
nted
TWG was created to

check if repairs are
needed on subject
vehicles.
It is further recommended
that the City of Talisay
should strictly observe the
regulations set forth under
RA
9184
in
the
procurement of spare parts
and
repairs
and
maintenance of its motor
vehicles
and
heavy
equipments to show to the
75
Repairs of
motor
vehicles are
not specific
as to job to
be
done
thus
creating
doubts on
the
regularity
thereof.
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
People of Talisay City that

the
present
blatant
disregard
of
the
government procurement
regulations are corrected to
get the most advantageous
price which is the bottom
line for every government
procurement.
Also, all
heads of divisions and their
respective staff involved in
the process should be
trained on the proper
documentation
of
procurement transactions.
15
Review of the Monthly

Reports
of
Gasoline
Consumption for CY 2010
revealed
excessive
consumption of gasoline and
diesel fuel of certain vehicles
thereby casting doubt on the
utilization thereof. Further,
controls for the issuance of
purchase orders for fuels for
motor vehicle of certain
offices
were
not
conscientiously
observed
resulting
in
excessive
purchases of these items to
the disadvantage of other
programs for the benefit of
the constituents of City of
Talisay.
We
recommend
that
control on the use of fuel
for motor vehicles should
be properly monitored and
controlled.
AAR
CY
2010
Fully
Impleme
nted
Trip tickets are already

prepared.
16
Of the twenty seven (27)

outstanding
receivables
booked under Due from
NGOs/POs as of December
31, 2010, only fifteen (15)
accounts
totaling
P969,600.00 were financial
assistance to NGOs/POs
and which were granted
without
proper
documentation in violation of
COA Circular No. 2007-001
dated October 25, 2007
resulting
to
irregular
disbursement
of
public
funds.
The
Accounting
Department should require
the submission by the
beneficiaries
of
the
required documents like
the
Memorandum
of
Agreement and the rest of
the required supporting
documents as mentioned
above and submit the
same
to
this
office;
otherwise,
these
disbursements
will
be
disallowed in audit and
should be refunded by the
concerned officers of the
City of Talisay.
AAR
CY
2010 &
previou
s years
Not
Impleme
nted
Had stopped granting

financial assistance to
NGOs/POs until upon
compliance with the
requirements
as
required by COA.
Difficulty in
securing the
required
documents
considering
that these
transactions
pertain
to
prior years
yet.
17
Payment of lot purchases,

first salaries and terminal
leave
benefits
totaling
P39,680,731.73 were not
submitted for pre-audit in
violation of COA Circular
2009-002 dated May 18,
2009, reinstituting selective
pre-audit on government
transactions; thus, resulted
to irregular disbursement of
public funds.

City Mayor should be made
to explain as to why the
above-mentioned
disbursements were not
submitted
to
the
Commission
on
Audit
(COA) for pre-audit.
AAR
CY
2010
Fully
Impleme
nted
Pre-audit already lifted.
It is further recommended
that the City Mayor should
observe strict compliance
76
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
with
COA rules
and
regulations so that the
resources
of
the
government
shall
be
managed, expended or
utilized in accordance with
law and regulations and
safeguarded against loss
or wastage resulting from
illegal
or
improper
disposition.
18
Excessive
Grant
of
Representation
and
Transportation Allowances
(RATA) in calendar year
2010 to the officials of the
city government totaling
P422,560.00 in violation of
Local Budget Circulars No.
96 dated August 20, 2010
and No. 2009-91 dated
March 27, 2009; thus,
resulting
to
improper
disbursement
of
public
funds.

officials of the City of
Talisay
receiving
representation
and
transportation allowances
should refund the excess of
the prescribed RATA rates
granted
to
them
for
calendar years 2009 and
2010.
AAR
CY
2010
Partially
Impleme
nted
The officers concerned

had started to refund
the amount.
Excess
amount
granted was
paid
in
installment.
19
One Accountable Officer

assigned
at
the
Slaughterhouse used new
official receipt stub leaving
temporarily the remaining
OR sheets of the previously
issued one to three stubs
unused hence the delayed
notice of the loss of certain
official receipts. Also, there
were unnoticed delay of
remittances of collections
from two (2) to six (6) days
which may have resulted to
lapping
of
collections.
Further, said unused OR
sheets were not reported on
his
daily
Report
of
Collections and Deposits
(RCD) in violation of the
regulation under Section 49
of
NGAS
Manual
for
monitoring purposes.
We recommend that the

subject Collector be made
to explain the delayed
remittance
of
certain
collections as shown in the
attached schedule.
AAR
CY
2010
Partially
Impleme
nted
Explanation was made

in his affidavit of loss.
However,
subject
accountable officer and
all
other
collecting
officers are already
required to account all
official
receipts
received daily in their
RCD.
Some
collecting
officers still
failed
to
remit
collections
daily.
We further recommend that

the Accountable Officer
concerned be also required
to present in his daily
Report of Collections and
Deposits all accountable
forms being requisitioned
during
the
period,
issuances of the same and
balances
including
accountable forms which
has long been unused and
still not returned to the City
Treasurer so that proper
monitoring of usage of
accountable forms and
remittances of collections
could be done and avoid
possible
lapping
of
collections.
The Liquidating
should check that-
Officer
1) Collectors utilization
of OR stub and all
other
accountable
forms be done on a
first
in-first
out
method to insure that
usage or issuances
of all accountable
77
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
forms are properly

accounted for. Thus,
no new stub should
be used unless all
the
ORs
of
previously used stub
are already issued.
2) All unused ORs are
reflected in the daily
Report of Collections
and
Deposits
submitted by the
Collector.
This is
necessary in the
monitoring of the
usage of all ORs
issued
to
the
Collector.
3) All collectors should
remit
intact
all
collections to the LO
daily.
20
Land and Accounts Payable

were understated by P
26,016,687.70 representing
the unpaid balance of lots
purchased on installment
basis, thereby affecting the
accuracy of the accounts
balances in the financial
statements.

Accounting Office should
record the total cost of lots
purchased
despite
payment is made by
installment.
We further
recommend that Budget
Office should not utilize
Moreover,
make
a
correcting entry to record
the cost of the unpaid
portion
of
the
lots
purchased in the previous
years
and
the
corresponding liability in
order
to
correct
the
understatement of the land
and liability accounts.
AAR
CY
2010
Not
Impleme
nted
The
Accounting
Department still did not
set up the Accounts
Payable since lots are
paid
in
installment
basis.
This is due
to the belief
of both the
Accounting
and Budget
Offices that
these
are
long
term
payables
and
appropriatio
ns on all
expenditure
s are on a
yearly basis
only.
21
Cash in Bank Account was

overstated by the net
amount of P1,291,237.22
due to various unrecorded
deposits and disbursements
and other reconciling items
that were not taken up in the
books contrary to COA
Circular
96-011
dated
October 2, 1996.

Accounting office take up in
the books, the reconciling
items in order to reflect
correct account balances
and the Treasurers office
submit to the Accounting
Office
disbursement
vouchers on the prescribed
time so that these could be
recorded in the book of
accounts.
AAR
2010 &
2009
Not
Impleme
nted
The Accounting had

coordinated with the
other
department
heads to correct this
problem.
Delay in the
return
of
vouchers
forwarded
to
other
department
s due to
lack
of
supporting
documents.
Reiterated
in
finding
no.
1
hereof.
22
Expenditures subject to pre

audit totaling P 9,890,082.93
were paid by management
without the approval in pre
audit by the COA Auditor, in
violation of COA Circular
2009-002 dated May 18,
2009.
We
recommend
that
management
comply
strictly with the provisions
of COA Circular 2009-002
relative to the submission
of transactions to pre audit
and approval by the COA
Auditor before payment is
AAR
2010 &
2009
Fully
Impleme
nted
Pre-audit already lifted.
78
Audit Observation
Recommendation
Ref
Status
of
Impleme
ntation
Reason for
Partial/Non
Implement
ation
Management
Action
made, to preclude the

disallowance in audit and
administrative disciplinary
action as provided under
Section 11.2 of COA
Circular 2009-002.
23
24
25
Certificates of Title for twenty

six (26)
parcels of land
purchased and fully paid
were not yet issued in the
name of the city government,
contrary to the provisions of
Section
449
of
the
Government Accounting and
Auditing Manual and Section
148 of COA Circular 92-386.
Majority number of parcels of
land owned by the city
government for several years
had no proof of ownership.
Certificates of Title for

twenty six (26) parcels of
land purchased and fully
paid were not yet issued in
the name of the city
government, contrary to the
provisions of Section 449
of
the
Government
Accounting and Auditing
Manual and Section 148 of
COA
Circular
92-386.
Majority number of parcels
of land owned by the city
government for several
years had no proof of
ownership.
AAR
2009
Partially
Impleme
nted
Preparation
documents
process.
of
on
Non
readiness of
supporting
documents
for titling.
Subsidiary Ledger Account

Balances of Several Other
Receivables & Payables
Accounts as of December
31, 2009, showed abnormal
balances
totaling
P4,584,284.68
thus, the
reliability of the balance of
the
said
accounts
is
doubtful.

Accounting
Division
analyze the cause which
lead
to the negative
balance of the account and
make the corresponding
adjusting/correcting entry
to arrive at a correct
balance of the account.
AAR
2009
Not
impleme
nted
The
Accounting
Department has not
effected correction of
their system to avoid
this problem.
This is a
computer
systems
problem
that has to
be
corrected
yet.
However,
further
review
should be
made
on
these
accounts to
effect
appropriate
action
on
receivable
and payable
accounts.
Disbursements of PDAF 1. Submit to the Office of

Funds
totaling
the Auditor the following
P25,833,538.50 were not
documents to support
supported with complete and
the
disbursement
appropriate
documents
voucher:
contrary to the provisions of
Section 4 (6) of P.D. 1445
a. Duly signed distribution
and Section 23.6,25.3,25.4,
list and/or complete list
and 37 of the Implementing
of the recipients of the
Rules and Regulations of
items
purchased.
Republic Act No. 9184.
Inventory of items on
Furthermore, the transaction
Hand as of December
was erroneously recorded in
31, 2008.
the books as Due to LGUs
(418) instead of Due to
b. BAC documents:
Other NGAs (416) and
1. Eligibility Documents
purchase of supplies were
checklist which using the
not recorded under the
pass and fail criteria.
pertinent inventory account,
2.
Technical
and
in violation of the provisions
Financial Proposals
of Section 103 of the NGAs
3. Performance Security
AAR
2007
79
still
Adjustments will be
effected in March 2013
financial report.
Not
Impleme
nted
The
account
was
adjusted in CY 2008.
However, the required
documents were not
submitted.
No
distribution
list
was
submitted.
Audit Observation
Recommendation
Manual (Vol. I)
Ref
4. Minutes of the BAC

Meetings relative to the
transactions.
5. Evidence that the
bidding was given the
widest publicity.
c.
2.
Result of Laboratory
tests of delivered items,
in case of drugs and
medicines.
The Accountant should
record the receipt of
PDAF funds using the
Account code Due to
NGAs instead of Due to
LGUs and observe the
provisions of Section
103 of the NGAs Manual
Vol. I in recording Trust
Fund transactions in the
books of accounts.
3.
The Accountant should

prepare the following
journal entry and record
the receipt of the PDAF
Funds.
Cash in Bank LCCA - (111)
P4,000,000.00
Due to Other NGAs (416)
P4,000,000.00
80
Status
of
Impleme
ntation
Management
Action
Reason for
Partial/Non
Implement
ation
PART IV
LIST OF ANNEXES
I.
FINANCIAL STATEMENTS BY FUND Balance Sheet

a. Consolidated General Fund
b.Special Education Fund
c. Trust Fund
II.
FINANCIAL STATEMENTS BY FUND Statement of Income and

Expenses
III.
FINANCIAL STATEMENTS BY FUND Statement of Cash Flows

c. Trust Fund
IV.
NOTES TO FINANCIAL STATEMENTS BY FUND

b. Special Education Fund
c. Trust Fund
V.
STATUS OF APPROPRIATIONS, ALLOTMENTS AND

OBLIGATIONS (GF AND SEF) Annex AA
VI.
ACCOMPLISHMENT REPORT Annex BB
79
80
81
82
LONG-TERM LIABILITIES
Mortgage/Bonds/Loans Payable
Other Long-Term Liabilities
Total Mortgage/Bonds/Loans Payable
1,094,746.52
1,094,746.52
3,116,958.34
3,116,958.34
TOTAL LONG-TERM LIABILITIES
1,094,746.52
3,116,958.34
DEFERRED CREDITS
Deferred Real Property Tax Income
Deferred Credits to Income
Other Deferred Credits
21,507,936.87
0.00
16,284,280.53
25,553,469.22
0.00
14,585,477.92
TOTAL DEFERRED CREDITS
37,792,217.40
40,138,947.14
TOTAL LIABILITIES
119,701,130.21
104,452,923.98
905,909,022.17
0.00
842,859,425.43
0.00
3,536,770.09
82,751,419.57
0.00
86,288,189.66
6,880,605.74
73,814,832.99
0.00
80,695,438.73
992,197,211.83
923,554,864.16
1,111,898,342.04
1,028,007,788.14
EQUITY
Government Equity
Retained Earnings
Intermediate Accounts
Prior Year's Adjustments
Income and Expense Summary
Retained Operating Surplus
Total Intermediate Accounts
TOTAL EQUITY
TOTAL LIABILITIES and EQUITY
Certified Correct:
83
84
85
86
87
EQUITY
Government Equity
Retained Earnings
TOTAL EQUITY
31,706,042.66
0.00
28,031,817.93
0.00
(7,492.59)
7,150,736.81
0.00
7,143,244.22
43.80
3,674,180.93
0.00
3,674,224.73
38,849,286.88
31,706,042.66
80,714,128.50 74,720,336.03

Certified Correct:
88
89
90
91
LONG-TERM LIABILITIES
Mortgage/Bonds/Loans Payable
Loans Payable - Domestic
Other Long-Term Liabilities
Total Mortgage/Bonds/Loans Payable
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL LONG-TERM LIABILITIES
0.00
0.00
DEFERRED CREDITS
Deferred Real Property Tax Income
Deferred Credits to Income
Other Deferred Credits
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL DEFERRED CREDITS
0.00
0.00
TOTAL LIABILITIES
EQUITY
Government Equity
Retained Earnings
TOTAL EQUITY
42,491,827.07
35,393,812.16
75,333,003.00
0.00
96,601,534.80
0.00
0.00
0.00
0.00
0.00
0.00
0.00
75,333,003.00
117,824,830.07

Certified Correct:
92
96,601,534.80
131,995,346.96
93
2012
94
2011
2012
95
2011
2012
96
2011
2012
Depreciation - Buildings
Office Buildings
School Buildings
Markets and Slaughterhouses
Other Structures
Depreciation - Office Equipment, Furniture and Fixtures
Office Equipment
Furniture and Fixtures
IT Equipment
Depreciation - Machineries and Equipment
Communication Equipment
Construction and Heavy Equipment
Medical, Dental and Laboratory Equipment
Sports Equipment
Other Machineries and Equipment
Depreciation - Transportation Equipment
Motor Vehicles
Watercrafts
Depreciation - Other Property, Plant and Equipment
Other Property, Plant and Equipment
Discounts
Discount on Real Property Taxes
Discount on Special Education Tax
TOTAL MAINTENANCE AND OTHER OPERATING EXPENSES
Financial Expenses
Bank Charges
TOTAL EXPENSES
Certified Correct:
97
2011
126,989.06
974,020.34
1,930,121.97
3,933,459.46
6,964,590.83
126,989.06
778,340.36
1,183,313.20
3,572,700.26
5,661,342.88
294,035.08
876,158.92
732,221.78
1,902,415.78
302,822.96
839,094.98
1,781,408.33
2,923,326.27
663,136.32
64,575.00
39,492.00
40,805.02
1,795.50
809,803.84
631,583.92
64,575.00
35,937.00
40,805.02
1,496.25
774,397.19
840,883.93
24,495.30
865,379.23
825,288.87
24,495.30
849,784.17
281,683.99
281,683.99
699,709.91
699,709.91
618,711.60
0.00
618,711.60
357,603.72
0.00
357,603.72
112,337,036.17
112,337,036.17
297,345,951.53
102,415,447.64
102,415,447.64
264,837,260.90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
426,131,264.23
387,829,623.15
82,751,419.57
73,814,832.99
98
2012
99
2011
2012
100
2011
2012
101
2011
2012
Financial Expenses
Bank Charges

TOTAL EXPENSES
Certified Correct:
102
2011
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
29,511,672.23
25,480,113.40
7,150,736.81
3,674,180.93
103
104
Cash Outflows:
Payment of Loan Amortization
Retirement/Redemption of Debt Securities
Total Cash Outflows
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(1,877,445.00)
13,100,341.86
11,906,991.06
(1,193,350.80)
10,029,546.06
11,906,991.06
Certified Correct:
105

City of Talisay
STATEMENT OF CASH FLOWS
As of DECEMBER 31, 2012
TRUST FUND
Cash Flows from Operating Activities:
Cash Inflows:
Share from Internal Revenue Allotment
Collection from Taxpayers
Receipts from sale of goods and services
Dividend Income
Interest Income
Other Receipts
Total Cash Inflows
Cash Outflows:
Payments to Suppliers/Creditors
Employees
Interest Expenses
Other Disbursements
Total Cash Outflows
Net Cash from Operating Activities
Cash Flows from Investing Activities:
Cash Inflows:
Sale of PPE
Sale of Debt Securities of Other Entities
Collection of Principal on Loans to Other Entities
Total Cash Inflows
Cash Outflows:
Purchase of PPE and Public Infra
Purchase of Debt Securities of Other Entities
Grant/Loans to Other Entities
Total Cash Outflows
Net Cash from Investing Activities
Cash Flows from Financing Activities:
Cash Inflows:
Acquisition of Loan
Issuance of Debt Securities
Total Cash Inflows
Cash Outflows:
Payment of Loan Amortization
Retirement/Redemption of Debt Securities
Total Cash Outflows
2012
2011
0.00
0.00
0.00
0.00
0.00
61,386,697.34
61,386,697.34
0.00
0.00
0.00
0.00
0.00
54,482,826.18
54,482,826.18
544,333.48
0.00
0.00
22,931,772.10
23,476,105.58
37,910,591.76
1,101,291.85
0.00
0.00
23,769,564.38
24,870,856.23
29,611,969.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
31,910,661.88
0.00
0.00
31,910,661.88
(31,910,661.88)
28,427,082.51
0.00
0.00
28,427,082.51
(28,427,082.51)
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
5,999,929.88
1,184,887.44
31,358,988.48
30,174,101.04
37,358,918.36
31,358,988.48
Certified Correct:
106

Province of Cebu
CITY OF TALISAY

__________________________________________________________________________________________________
_________________________________________________________________________________________
Tel: 273-5666
Cell No. 09277974136

General Fund Consolidated
2012
(With Comparative Figures for 2011)
AGENCY PROFILE
Talisay City, classified as third class city, whose financial statements are being
The city is IRA dependent for the reason that the city tax code will be implemented in
the year 2007 because of five year moratorium in realty tax collection embodied in RA 8979.
Out of the reported total income for the year, 24% represents income generated from local
sources while 76% from Internal Revenue Allotment. For the total expenditures, 21%
represents personal services, 46% for MOOE while the remaining 33% represents capital
outlay expenses.
Inclusion in the consolidated financial statements of transactions of the three funds
General Fund, Special Education and Trust Funds. The General Fund consists of transactions
of the General Fund Proper and special accounts like markets, slaughterhouse, waterworks,
talisay city college (tcc) and 20% development fund.
107
Recording of income is on accrual basis including advance payment received on
December, 2010 treated as deferred income of 2011. It will be recorded as income by January,
2012 thru journal entry.
The agency had also discovered some errors that affect the financial statements. Such
errors were recorded in the account Prior Years Adjustments broke down into the following:
Previous Year
Other non-cash previous years adjustment
108
2012
3,536,770.09
2011
6,880,605.74
BREAKDOWN/COMPOSITION OF, AND EXPLANATORY NOTES ON

VARIOUS ACCOUNTS
109
110
1.
Inventory Account consists of office supplies, accountable forms not yet

considered as expense pending GSOs inventory report not yet received during closing
of the book
2.
Property, Plant and Equipment acquired from 2002 until the present are carried in
For assets under construction, all related expenses incurred during the construction of
the project are considered asset and those incurred after the construction are charged
against the maintenance and operating cost.
3.
Payable Accounts
Payables accounts are recognized and recorded in the book of accounts only upon
acceptance of goods and services rendered to the agency. Acct. 412 represents BIR
remittance, 413 GSIS remittance, Pag-ibig remittance, Philhealth remittance, 411
National remittance. All remittance will be remitted January, 2013. Same with
account 424 represents accounts to be transferred to SEF & Trust Fund in the amount
of Php 26,743,880.31. Other long-term liabilities represents loan payable of Jaican
loan for old Tabunoc Public Market thru MCDP P 1,155,505.41 including interest
which will be fully paid on 2013.
111
GOVERNMENT EQUITY
112
1. Portion pertaining to plant, property and equipment

a. 8-94-000 before NGAS
P 126,545,402.31
b. 8-94-384 before NGAS
6,252,181.42
c. 8-96-000 before NGAS
371,468.13
P 133,169,051.86
Less: Adjust. 12/11 Public Infra 17,690,879.83
- Depn Exp 11,357,618.54
29,048,498.37
Add: Prior Years Adj. 12/10
6,880,605.74
Transfer of asset from TF
4,029,618.42
From DOTC
14,731,396.82
P 78,478,932.51
2. Equity set aside to finance capital projects with appropriation
Provided in previous years
11,831,125.36
3. Equity allocated to settle existing obligation
Account 401-439 excluding 409
56,847,659.63
50,742,154.22
20,151,362.44
50,392,816.44
4. Obligated allotments of which no liability had been recognized

Government Equity
P 923,554,864.16
Capital Outlay (refer to #1) P 78,478,932.51
Surplus:
* 61,460,290.54
P 139,939,223.05
783,615,641.11 745,401,797.46
*Appropriated(payables)
56,847,659.63
(continuing)
11,831,125.36
Unappropriated
( 7,218,494.45 )
5. Available for Operation
( 7,218,494.45) (20,869,222.12)
P
923,554,864.16 P 845,818,908.44
113
To check:
A.) Total Income (cash item) net of discounts
Total expenses (cash item)
Personal Services
112,276,010.12
Maint. & Other Operating Expenses 229,915,919.59
Capital Outlay
103,973,584.12
Reserve: Continuing
5,788,428.65
Calamity
14,362,933.79
Net Income
Add/(Less): Prior years adjustment
2009 Surplus
Surplus
P 425,117,864.70
P 466,316,876.27
(41,199,011.57)
17,047,208.97
3,282,580.48
P (20,869,222.12)
B.)
2010
2009
Cash
P 53,855,786.06
P103,383,794.43
Receivables
11,276,210.97
13,542,456.93
Prepayments
6,550,233.80
4,905,891.34
Total increase in cash and receivables
Less:
Payables
P 50,392,816.44
P 75,256,945.41
Other Deferred credits 12,281,723.01
9,930,646.72
Interest Payables
843,709.49
1,522,357.87
Long-term liabilities
4,933,818.52
6,566,179.94
Reserves: Continuing 5,788,428.65
21,325,409.23
Calamity
14,362,933.79
Total increase in liabilities
Add/(Less): Government Equity representing 2009 surplus
Net increase in cash and receivables
Increase/Decrease
P(49,528,008.37)
(2,266,245.96)
1,644,342.46
P(50,149,911.87)
P(24,864,128.97)
2,351,076.29
(
678,648.38)
( 1,632,361.42)
( 15,536,980.58)
14,362,933.79
( 25,998,109.27)
3,282,580.48
P(20,869,222.12)
Based on the schedule of government equity, the agency continually adopted the principle
government budget was prepared based on estimated income submitted by the city
treasurer where all expenses were controlled based on the release of allotment issued by the
mayor and prepared by the city budget office. Unfortunately the estimated income
submitted by the city treasurer did not realized.
114

Province of Cebu
CITY OF TALISAY

__________________________________________________________________________________________________
_________________________________________________________________________________________
Tel: 273-5666
Cell No. 09277974136

Special Education Fund
2012
AGENCY PROFILE
Talisay City, classified as fifth class city, whose financial statements are being
The city is IRA dependent for the reason that the city tax code was implemented in the
year 2007 because of five year moratorium in realty tax collection embodied in RA 8979.
Recording of income is on accrual basis including advance payment received on
December, 2012 treated as deferred income of 2012. It will be recorded as income by
January, 2013 thru journal entry.
115
Errors that affect the financial statements, when discovered by the agency will be
recorded in the account Prior Years Adjustments. This account is broken down into the
following:
Previous Year
- Adjustment on Metrobank accountP
7,492.59
BREAKDOWN/COMPOSITION OF, AND EXPLANATORY

VARIOUS ACCOUNTS
a.) Cash account consist of the following:
Cash Disbursing Officers
- this account represents cash advance of Emma L.
Macuto for various TAV incentives. This amount
was fully liquidated in January 2013.
NOTES
ON
2,515,829.22
Cash in Bank Current Account

- this account represents the bank balance on
LBP Acct # 0142-0198-33
5,211,783.00
Cash in Bank Time Deposit

- this accounts represents the agencys time
deposit acct. with Land Bank of the Philippines
2,301,933.00
_____________
P 10,029,546.06
b.) Receivables consist of the following:

Due from Officers and Employees (123)
- represents net over/under liquidation of cash advances
of employees.
343.76
Special Education Tax Receivable (128)

- represents unrealized special education tax
21,508,783.28
Due from Other Funds (144)

- this account consists of the following:
- due from General Fund amounting to P23,794,201.89
represents special education tax collections of
P18,783,338.06; fund transfer to General Fund in the
amount of P5,000,000.00; liquidation of travel
expenses received in Gen. Fund, P5,757.82 ;General
Fund expenses paid from SEF, P3,416.01; and liq of
cash advance erroneously recorded in General Fund,
24,298,201.89
116
P1,690.00.
due from Trust Fund amounting to P504,000.00 represents collection from DepEd Division of Talisay City
for reimbursement of honorarium of 28 teachers under
kinder volunteer program
_______________
P 45,807,328.93
c.) Inventory Account consists of office supplies (155) and other supplies (165) not
yet
considered as expense pending GSOs inventory report not yet received
during closing of the book.
d.) Property, Plant and Equipment acquired from 2002 until the present are carried in
For assets under construction, all related expenses incurred during the construction
of the project are considered asset and those incurred after the construction are
charged against the maintenance and operating cost.
e.) Payable Accounts
Payable accounts are recognized and recorded in the book of accounts only upon
acceptance of goods and services rendered to the agency. Acct. 412 represents
BIR remittance, Acct 413 GSIS remittance, Acct 414 Pag-ibig remittance, Acct
415 Philhealth remittance. All remittances will be remitted January, 2013. Acct
418 represents provincial aid received for roof replacement. Account 424
represents General Fund collection deposited to SEF account and release of cash
bond to contractor paid by Trust Fund. Account 426 represents cash bond,
warranty retention and performance bond from contractors and suppliers. Account
439 represents employees CFI loan payments which were deducted from payroll.
f.) Deferred Credits
Acct 452 -Deferred special tax income represents unrealized income in 2012. Acct
455 Other deferred credits represent advanced special education tax payments
received for years 2013 to 2017.
GOVERNMENT EQUITY
a) Portion pertaining to plant, property and equipment
Invested Capital before NGAS
P 4,090,253.37
Depreciation expense 2012
( 1,471,266.51)
Prior years adjustment debit balance
( ____ 7,492.59)
b) Equity set aside to finance capital projects with appropriation
117
P 2,611,494.27
621,580.24
c) Equity allocated to settle existing obligations
4,237,035.52
d) Obligated allotments of which no liability had been recognized

Government Equity
P38,849,286.88
Less: Invested Capital P 2,611,494.27
Surplus:
Appropriated
Payables
4,237,035.52
Continuing appro. 621,580.24
Unappropriated
6,111,839.41
13,581,949.44
e) Available for Operation
6,111,839.41
P 38,849,286.88
To check:
A) Total Income (cash item) net of discounts of P883,873.25
Total expenses (cash item)
Personal services
P 19,471,264.00
Maintenance & other operating expenses
7,685,268.47
Capital outlay
5,017,378.67
Net Income
Add/(Less) : Prior years adjustments
Govt Equity-representing 2011 surplus
included in SB #1
Surplus Unappropriated
P 35,778,535.79
32,173,911.14
3,604,624.65
(
7,492.59)
2,514,707.35
P 6,111,839.41
B) Cash Available
2011
Cash
( 1,877,445.00)
Due from Officers & Employees
Due from Other Funds
2012
Increase/
(Decrease)
P 11,906,991.06 P 10,029,546.06 P
343.76
15,306,701.22
343.76
24,298,201.89
Net increase in Cash & Receivables

Less:
Payables
Other deferred credits
Continuing Appropriation
8,991,500.67
7,114,055.67
3,456,566.76
14,004,148.21
4,237,035.52
16,119,022.82
780,468.76
2,114,874.61
621,580.24
Net increase in Liabilities
3,516,923.61
Net decrease in Cash & Receivables
3,597,132.06
118
Add/(Less): Govt Equity representing 2011 surplus
2,514,707.35
Available for Operation

6,111,839.41

Province of Cebu
CITY OF TALISAY

__________________________________________________________________________________________________
_________________________________________________________________________________________
Tel: 273-5666
Cell No. 09277974136

Trust Fund
2012
AGENCY PROFILE
Talisay City, classified as fifth class city, whose financial statements are being
The city is IRA dependent for the reason that the city tax code was implemented in the
year 2007 because of five year moratorium in realty tax collection embodied in RA 8979.
119
.
Errors that affect the financial statements, when discovered by the agency will be recorded in
the account Prior Years Adjustments.
BREAKDOWN/COMPOSITION OF, AND EXPLANATORY NOTES ON
VARIOUS ACCOUNTS
a.) Cash account consist of the following:
Cash in Vault (101)
- this represents collection for a week
extension deposited January 2013
6,712.73
Cash Disbursing Officers (103)

- this represents cash advance of Lolita W. Ylaya for
supplementary feeding program liquidated in January 2013
110,160.00
Cash in Bank Current (111)

- this account consists of the following bank balances:
LBP Acct # 0142-0198-41
36,046,663.78
LBP Acct # 0142-1046-36
33,888.32
LBP-RPTA/DCP Acct #0142-1007-03
39,278.01
LBP Acct # 0142-1048-73
535,116.01
DBP Acct # 0735-021444-030
552,169.51
37,207,115.63
Cash in Bank Savings (113)

- this account represents the agencys savings
acct. with PNB and bail bond deposit
34,930.00
____________
P 37,358,918.36
b.) Receivables consist of the following:

Accounts Receivable (121)
- represents cash receivable from KKK
-
Due from Officers and Employees (123)

represents cash advance for traveling in 2004
by Emilio Alcontin, a brgy secretary which remained unliquidated.
120
64,715.50
5,100.00
Due from Other Funds (144)

represents due from General Fund for the following
funds received and recorded in GF books:
-Revenue share from MCWD
-20% housing compliance from J Nihon
Devt Corp & other TF collections (net)
-General Fund expenses paid from Trust Fund
represents due from SEF for release of cash
bond to SEF contractor
2,359,642.16
2,061,338.79
166,539.63
121,800.00
9,963.74
c.) Inventory Accounts consist of drugs & medicines for 1st District (159) and school
supplies for
elementary pupils of 1st District (165) not yet considered as expense
pending GSOs complete inventory report not yet received during closing of the book.
d.) Prepayment consists of deferred charges (Acct 182) which represents over remittance to
BIR of tax withheld on government purchases. This amount will be offsetted against
future remittances once a tax credit is issued by the BIR.
e.) Property, Plant and Equipment acquired from 2002 until the present are carried in
consideration of depreciation expense pursuant to NGAS existence. PPEs acquired
through donation/ financial assistance during the year were transferred to the General
Fund books and accordingly decreased the Government Equity account.
For assets under construction, all related expenses incurred during the construction of the
project are considered asset and transfer to General Fund will be made upon completion.
f.) Payable Accounts
Payable accounts are recognized and recorded in the book of accounts only upon
acceptance of goods and services rendered to the agency. Acct 401 P 5,100 represents
unclaimed checks, adjustments were made in 2004 and 2005. Acct. 412 represents BIR
remittance, Acct 414 Pag-ibig remittance, Acct 415 Philhealth remittance, Acct 416
PDAF and funds from national government agencies for designated projects and the
balance for remittance to Bureau of Treasury. All remittances will be remitted January,
2013. Acct 418 represents funds held in trust. Account 424 represents interest earned
from bank deposits amounting to P301,014.92; payments made by General Fund
amounting to P421,479.50; General Fund collection received and deposited in Trust Fund
amounting to P15,953.82 and SEF collection received and deposited in Trust Fund
amounting to P504,000.00. Acct 426 represents warranty retention and cash bond from
suppliers in the amount of P3,822,297.85. Acct 427 represents Performance/Bidders/Bail
Bonds Payable in the amount of P 2,366,986.87 which will be paid when due.
GOVERNMENT EQUITY
1. Invested Capital Held in Trust, 01/01/2012
Add/(Less): Acquisition of Property, Plant & Equipment during 2012
Transfer of donated/acquired PPEs to General Fund books
121
P 96,350,432.50
33,373,181.73
( 54,641,713.53)
75,081,900.70
2. Financial Assistance Repair /renovation of Laray Elementary
School Stage
50,000.00
Less: Prior Years Adjustment, 08/2005
48,897.70
1,102.30
3. Financial Assistance on small and big business enterprises
250,000.00
P 75,333,003.00
========================
Cash Available:
Cash in Bank
Add/(Less) Receivables (Acct 121, 123 & 144)
Deferred charges (Acct 182)
Payables (Acct 401, 412, 414, 415,
424, 426 & 427)
37,358,918.36
2,174,340.38
1,512,174.10
( 7,890,425.78)
____________________________________
Total
33,155,007.06
======================
Trust Accounts:
Due to Other NGAs (Acct 416)
Due to LGUs (Acct 418)
Financial assistance classified under Government
Equity (SL1-1 & 2)
8,725,597.54
25,875,803.75
251,102.30
__________________________________
34,852,503.59
Less : Adjustment/Correction on Cash in Bank debited to
Prior Years Adjustments/Govt Equity in 2006
1,697,496.53
___________________________________
Total
33,155,007.06
======================
122
Annex AA
LOCAL GOVERNMENT OF CITY OF TALISAY, CEBU
STATEMENT OF APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS AND BALANCES
Fund : GENERAL FUND
Year : 2012
CODE
FUNCTION/PROGRAM/
APPROPRIATIONS ALLOTMENTS
PROJECT
GRAND TOTAL
A.
521,591,347.95
OBLIGATIONS
521,088,020.54
483,630,945.09
BALANCES OF BALANCES OF
APPROPRIATION ALLOTMENTS
503,327.41
37,457,075.45
CURRENT YEAR APPROPRIATION

Personal Services
111,179,225.91
111,179,225.91
104,717,544.19
MOOE
331,207,977.32
330,704,649.91
307,998,484.46
Capital Outlay
503,327.41
6,461,681.72
22,706,165.45
79,204,144.72
79,204,144.72
70,914,916.44
8,289,228.28
152,813,367.16
152,813,367.16
139,783,922.73
13,029,444.43
Personal Services
60,626,865.92
60,626,865.92
56,631,204.35
3,995,661.57
MOOE
92,186,501.24
92,186,501.24
83,152,718.38
9,033,782.86
1000 General Public Services
Capital Outlay
3000 Education, Cultural, Sports
22,500,000.00
22,500,000.00
20,310,112.84
2,189,887.16
& Manpower Dev't.

Personal Services
MOOE
Capital Outlay
565,000.00
565,000.00
565,000.00
19,810,000.00
19,810,000.00
18,289,181.84
1,520,818.16
2,125,000.00
2,125,000.00
1,455,931.00
669,069.00
33,452,848.71
33,452,848.71
30,368,644.98
3,084,203.73
Personal Services
20,324,048.71
20,324,048.71
19,836,376.05
487,672.66
MOOE
13,128,800.00
13,128,800.00
10,532,268.93
2,596,531.07
4000 Health Services
Capital Outlay
5000 Labor & Employment
Personal Services
MOOE
Capital Outlay
6000 Housing & Community
542,000.00
542,000.00
726,000.00
542,000.00
542,000.00
726,000.00
519,924.95
519,924.95
698,371.20
22,075.05
22,075.05
27,628.80
Development
Personal Services
MOOE
Capital Outlay
7000 Social Welfare Services
Personal Services
MOOE
Capital Outlay
726,000.00
146,249,575.39
726,000.00
146,249,575.39
698,371.20
-
142,399,651.00
27,628.80
3,849,924.39
6,340,050.04
6,340,050.04
6,032,316.15
307,733.89
138,909,525.35
138,909,525.35
135,367,334.85
3,542,190.50
1,000,000.00
1,000,000.00
1,000,000.00
8000 Economic Services
138,432,348.52
137,929,021.11
126,456,940.19
Personal Services
23,323,261.24
23,323,261.24
21,652,647.64
MOOE
39,029,942.56
38,526,615.15
36,345,307.11
Capital Outlay
76,079,144.72
76,079,144.72
68,458,985.44
7,620,159.28
26,875,208.17
26,875,208.17
23,093,377.20
3,781,830.97
9000 Other Purposes

Personal Services
MOOE
Capital Outlay
26,875,208.17
-
26,875,208.17
-
123
23,093,377.20
-
503,327.41
503,327.41
11,472,080.92
1,670,613.60
2,181,308.04
3,781,830.97
-
Annex AA
Fund : GENERAL FUND
Year : 2012
CODE
B.
FUNCTION/PROGRAM/ CONTINUING
APPROPRIATIONS
PROJECT
ALLOTMENTS
OBLIGATIONS
BAL. OF CONTINUING BALANCES OF
CONTINUING APPROPRIATIONS
MOOE
Capital Outlay

MOOE
Capital Outlay
2,626,127.61
2,204,282.53
421,845.08
284,740.00
275,320.00
9,420.00
284,740.00
275,320.00
10,220.00
10,220.00
9,420.00

& Manpower Dev't.
MOOE
Capital Outlay
MOOE
Capital Outlay
10,220.00
109,900.00
109,900.00
10,220.00
109,900.00
109,900.00
MOOE
Capital Outlay
MOOE
Capital Outlay
Development

MOOE
Capital Outlay
MOOE
Capital Outlay
51,000.00
-
51,000.00
-
51,000.00
51,000.00
2,170,267.61
1,757,842.53
2,170,267.61
1,757,842.53
412,425.08
412,425.08
9000 Other Purposes
MOOE
Capital Outlay
124
Annex AA
Fund : SPECIAL EDUCATION FUND
Year : 2012
CODE
FUNCTION/PROGRAM/
APPROPRIATIONS ALLOTMENTS
PROJECT
GRAND TOTAL
A.
33,979,004.40
33,979,004.40
OBLIGATIONS
BALANCES OF BALANCES OF
31,583,702.19
2,395,302.21
CURRENT YEAR APPROPRIATION

Personal Services
MOOE
Capital Outlay
842,748.30
842,748.30
842,748.30
28,403,907.35
28,403,907.35
26,441,658.71
1,962,248.64
4,732,348.75
4,732,348.75
4,299,295.18
433,053.57
Personal Services
MOOE
Capital Outlay
33,979,004.40
33,979,004.40
31,583,702.19
2,395,302.21
& Manpower Dev't.

Personal Services
MOOE
Capital Outlay
842,748.30
842,748.30
842,748.30
28,403,907.35
28,403,907.35
26,441,658.71
1,962,248.64
4,732,348.75
4,732,348.75
4,299,295.18
433,053.57
Personal Services
MOOE
Capital Outlay
Personal Services
MOOE
Capital Outlay
Personal Services
MOOE
Capital Outlay
Personal Services
MOOE
Capital Outlay
Personal Services
MOOE
Capital Outlay
Development
9000 Other Purposes
Personal Services
MOOE
Capital Outlay
125
ANNEX BB
INFRASTRUCTURE PROJECTS
2012
Contract
Date
Remarks
Amount Completed
January 1
By AdminInstallation of One Unit Jetmatic Pump
Kalubihan, Tabunok 45,730.0012-Jan-12100%completed
2 EGA Const.
Rehabilitation of Automatic Sprinkler
Lagtang Market
332,000.0017-Feb-12100% completed
3 Tuanson Const.
Bldg Extension forMeat & Fish Section Phase
Lagtang
1
Market 2,796,708.0001-Feb-12100% completed
Miramar, Poblacion
4Engr. J. Cabanao
Subdivision Survey
105,000.0030-Jan-12100% completed
5
By AdminConstruction of Swing and Fence
San Roque Day Care 20,000.0028-Jan-12100%completed
6
By Admin Road Concreting
Caduldulan, Lawaan 3
49,388.5512-Jan-12100% completed
7
By Admin Rehabilitation of Road
Pooc
61,055.0025-Jan-12100% completed
8
By AdminRepair of Sports Complex Gate
Pooc
49,028.3518-Jan-12100% completed
9
By Admin
Construction of Multi-Purpose Bldg Phase 1Lawaan 3
260,000.0031-Jan-12100% completed
10
By AdminConstruction of Multi-Purpose Bldg Phase 1 - Extra Work Lawaan 3
78,000.0031-Jan-12100% completed
11
By AdminRehabilitation of One Unit Jetmatic Pump San Roque
41,644.0024-Jan-12100% completed
Month
Contractor
Name of Project
Location
Total - >
3,838,553.90
February 1Gleymark Const.
Filling Materials for Cover
Sanitary Landfill
400,000.0002-Feb-12100%completed
2 WJC Const. Riprapping of Poblacion Creek
Miramar, Poblacion998,777.5010-Apr-12100% completed
3Gleymark Const.
Rehabilitation of Road and Drainage SystemMohon
2,000,000.0017-Feb-12100% completed
4Gleymark Const.
Construction of Slope Protection at Pond C Sanitary
phase 1 Landfill 1,499,000.0021-Feb-12100% completed
5Tuanson Const.
Fabrication & Installation of Pedestrian Railings
Tabunok
Phase 1
379,978.0012-Mar-12100% completed
6 By Admin Installation of One Unit Jetmatic Pump
Kimba, San Roque 41,644.0021-Feb-12100% completed
7 By Admin Improvement of Day Care Center
Pooc
45,493.0009-Feb-12100% completed
8 By Admin
Repair of 5-Unit Comfort Room
Brgy. Hall, San Rqoue19,061.0017-Feb-12100% completed
9 Danilyns
Fabrication & Installation of Signage
Lagtang Brgy. Hall 49,500.0018-Feb-12100% completed
10Suarez Builders
Movable Stage (6 sets)
Poblacion
87,440.0023-Feb-12100% completed
March
April
Total - > 5,520,893.50

1Tuanson Const.
Tent Fabrication & Installation
Lagtang Market
227,840.0012-Mar-12100%completed
2Tuanson Const.
Fabrication & Installation of 6 Units Basketball
Talisay
Goals
City
239,400.0014-Mar-12100% completed
3 WJC Const.Rehabilitation of Landing Park/Structure & Repainting
Poblacion
127,093.0020-Mar-12100% completed
4Tuanson Const.
27-Mar-12100%completed
Building Extension forMeat & Fish Section Phase 2Lagtang Market 2,781,344.00
5Gleymark Const.
Sanitary Landfill
400,000.0013-Mar-12100%completed
6 Jocyn Const.
Construction of 2-Storey RHU 2 Building Phase
Lagtang
2
1,500,000.0026-Apr-12100%completed
Sawsawan, San Roque 1,078,549.5910-Apr-12100% completed
7Tuanson Const.
Construction of New Concrete Bridge
8Gleymark Const.
Site Development Expansion Downstream Phase
Lagtang
1 Market 2,996,000.0011-Apr-12100% completed
9Gleymark Const.
Asphalt Overlay
Cabalang, Pooc
658,680.0003-Apr-12100% completed
10Gleymark Const.
Asphalt Overlay
Front Brgy Hall, Pooc
1,251,000.0003-Apr-12100% completed
11By Admin Rehabilitation of One Unit Jetmatic Pump Proper San Roque 20,757.0011-Mar-12100% completed
12Carmen SonConstruction of Fence at Day Care Center San Isidro
49,968.0012-Apr-12100% completed
Total - > 11,330,631.59
1 Jocyn Const Proposed Comfort Room w/ Septic Tank Brgy. Hall, Maghaway
154,901.0012-Apr-11100%completed
2Gleymark Const
Filling Materials for Cover at Sanitary Landfill
Tapul
400,000.0020-Apr-12100%completed
3 Jocyn ConstProposed Const. of Office/Park & Vehicle Holding Area - ExtraTabunok
Works
Fly-over
71,929.2515-Apr-11100% completed
4 WJC Const.Construction of 2-storey 2classroom bldg phase
Talisay1 City College 869,688.0001-Jun-11100% completed
5Planac Const.
Proposed Perimeter Fence of Butterfly Sanctuary
Jaclupan
237,188.2530-Apr-12100% completed
6Pintor Surveying
Topographic Survey
Mananga 2, Tabunok15,000.0018-Apr-11100% completed
7Gleymark Const
Asphalt Overlay of Basketball Court
San Isidro
294,400.0019-Apr-11100% completed
8Gleymark Const
Restoration of PAPAKA Building
Lawaan 3
167,265.0018-Apr-11100% completed
9Gleymark Const
Site Dev. Expansion of Lagtnag Public Market Phase 2 Downstream
Lagtang
2,996,059.44
07-May-12100% completed
10Gleymark Const
Landfill 1,500,000.0024-Apr-12100% completed
Construction of Slope Protection at Pond C Phase Sanitary
2
11WT Const. Construction of Rock Causeway and RC Deck with RORO Ramp Phase 3 Tanke Fish Port 48,232,472.00
98.50% acc.
12WJC Const. Construction of Open Canal with Cover
San Roque
362,838.0030-Apr-12100% completed
13Umpad Const Rental of Payloader
Sanitary Landfill
270,000.0004-Jun-11100% completed
14Gleymark Const
Sanitary Landfill
404,600.0029-Apr-11100% completed
15
By Admin
Improvement & Repainting of Basketball Court
San Roque
14,235.0004-Apr-12100% completed
16By Admin
Road Concreting
Tabulasan Junction 4,860.0006-Apr-11100% completed
17By Admin
Construction of Blind Drainage
Bucao Cmpd, Sn Isidro7,209.0006-Apr-11100% completed
18By Admin
Fabrication of Footpath
Bulacao
8,250.0012-Apr-12100% completed
19By Admin
Construction of Drainage
Kasambagan, Tangke25,945.0020-Apr-11100% completed
20By Admin
Proposed RCP Drainage
Laray, San Roque
11,300.0015-Apr-11100% completed
21By Admin Construction of Day Care Center
Bulacao
849,389.0016-Jul-12100% completed
22WJC Const. Proposed Streetlighting
Poblacion
50,000.0018-Apr-11100% completed
23Suarez Builders
Installation of Lighted Signage
Tanke
49,500.0027-Apr-12100% completed
24WJC Const. Construction of Footpaths
Poblacion
40,000.0027-Apr-11100% completed
25By Admin Construction of Lavatory/Toothbrush Area Tabunok Central School
55,030.0018-May-12100% completed
Total - >
126
57,092,058.94
May
June
July
1Gleymark Const.
Asphalt Overlay
Abalo St., Bulacao1,862,000.00
04-May-12100%completed
2 Jocyn Const.
Construction of 2-Storey RHU 2 Building Phase
Lagtang
3
1,500,000.0015-Jun-12100%completed
3Tuanson Const.
Construction of DSWD Detention Center Maghaway
1,623,768.00
30-May-12100% completed
4 RA Seville Construction of Perimeter Fence
Talisay City College
1,406,294.0015-Jun-12100% completed
Talisay City Sports Complex
5 WST Const. Installation of Fixed Glass Windows
196,500.0017-May-12100% completed
6Tuanson Const.
Demolition of 3-Storey Classroom BuildingSan Roque E/S
450,000.0014-Jun-12100% completed
7 Jocyn Const.Construction of Fence and Steel Gate
Lawaan E/S
490,000.0006-Jun-12100% completed
8 Jocyn Const.Improvement of Drainage System
Linao
1,499,800.0012-Jul-12100% completed
9Tuanson Const.
Additional Works at Gullas-Macapagal Market
Lagtang
2,509,878.0005-Jul-12100% completed
Backfilling & Cobncreting of Classroom Flooring & Lobby San Roque E/S
10Tuanson Const.
319,584.7907-Jun-12100% completed
11Gleymark Const.
Tapul
400,000.0007-Jun-12100% completed
12
Cabaog Surveying
Topographic and Road Profiling Survey
Biasong
30,000.0029-May-12100% completed
13By Admin
Repair of Covered Court
Manipis E/S
42,345.0017-May-12100% completed
14By Admin
Water System
Mainpis
20,420.0011-May-12100%completed
15Suarez Builders
Installation of Set Lighted Signage
San Isidro
43,065.0017-May-12100% completed
16
AAA DiamondRepair
Cnst. of Basketball Goal (2 units)
Tabok Sapa, Jaclupan28,341.0031-May-12100% completed
17
AAA DiamondRepair
Cnst. of Basketball Goal (4 units)
Ea & bugna, Jaclupan47,437.6531-May-12100% completed
18By Admin Rehabilitation of One Unit Artesian Well Bahadas, Tabunok
4,871.0018-May-12100% completed
19
AAA Diamond
Fabrication
Cnst.
of One Set Movable BasketballSaksak,
Goal
Jaclupan
42,000.0031-May-12100% completed
20By Admin
Construction of Communal Toilet
Anadol, Tabunok
41,035.0005-Jun-12100% completed
21By Admin
Repair of Artesian Well
Kimba, Sa Roque
7,292.0001-Jun-12100% completed
22By Admin Completion of One Unit Makeshift Classroom
Biasong E/S
50,000.0007-Jun-12100% completed
Total - > 12,614,631.44
1 By Admin Installation of One Unit Jetmatic Pump
Riles,Lower Mohon 36,694.0015-Jun-12100% completed
2Gleymark Const.
Roas Asphalting
SMI Nonoc, Tabunok
1,686,000.0029-Jun-12100%completed
Improvement of Barangay Road & Drainage System Const. Tabunok
3Gleymark Const.
1,798,000.0029-Jun-12100%completed
4 By Admin Improvement of Day Care Center
San Roque
57,070.0018-Jun-12100% completed
5 By Admin Improvement of Day Care Center/Health Center
Lawaan 1
50,000.0019-Jun-12100% completed
6 By Admin Fabrication of Tables and Chairs
Manipis
20,000.0026-Jun-12100% completed
7 Jocyn Const. Improvement of Health Center
Jaclupan
100,000.0029-Jun-12100% completed
8 By Admin
Fabrication of Filing Cabinet
Tabunok Brgy. Hall
9,268.0028-Jun-12100% completed
9 By Admin Installation of One Unit Jetmatic Pump Daruhan, San Roque47,585.0030-Jun-12100%completed
Total - > 3,804,617.00
1 By Admin Installation of One Unit Artesian Deep Well Pump (No. 1) Zone 6,Baybay Dumlog
60,385.0031-Jul-12 100%completed
2Pintor Surveying
Structural Survey
Salvador, Tanke
375,000.0012-Jul-12100% completed
3Tuanson Const.
Pasigarbo sa Sugbo (Props and Backdrop) Phase
Talisay
1 City
399,789.0027-Jul-12100% completed
4Gleymark Const.
Tapul
400,000.0018-Jul-12100% completed
5Tuanson Const.
Slaughterhouse Improvement & Expansion at
1,833,917.28
80% acc.
6
Holding Pen and Water System
7Tuanson Const.Asphalt Overlay
Biasong
2,862,340.8031-Jul-12 100%completed
8Planac Const.
Installation of Five (5) Unit Jetmatic Pump GK Housing
243,500.0004-Aug-12100%completed
9Tuanson Const.
399,789.0010-Aug-12100%completed
Pasigarbo sa Sugbo (Props and Backdrop) Phase 2Talisay City
10By Admin Desilting & Clearing of Canal
Tapul
3,000.0020-Jul-12100% completed
11 JKFB
Fabrication of Conference Table
Jaclupan
100,000.0002-Aug-12100% completed
12By Admin Improvement of Barangay Hall
San Roque
15,593.0002-Aug-12100% completed
13By Admin
Repair of Covered Court
Manipis
25,000.0008-Aug-12100% completed
14Tuanson Const.
Construction of Bleachers at Lagtang Complex
Lagtang
24,993.3629-Jul-12100% completed
15By Admin
Day Care Fence
Camp 4
50,000.0013-Aug-12100% completed
Total - > 6,793,307.44

August 1 Jocyn Const. Electrical Rewiring
Bulacao E/S
199,600.0022-Aug-12100%completed
2Tuanson Const
Pasigarbo sa Sugbu (Props & Backdrop) Phase
Talisay
3 City
302,811.0024-Aug-12100%completed
3Gleymark Const
Road Backfilling
Sombria, Lawaan 1 244,068.0009-Aug-12100%completed
4Gleymark Const
Road Asphalting
Sombria, Lawaan 1 397,551.0009-Aug-12100% completed
Sitio Pangpang, San Isidro
5Gleymark Const
Road Concreting
399,910.0010-Aug-12100%completed
6Gleymark Const
Repair of Concrete Road
Litmon, Dumlog
623,500.0015-Sep-12100%completed
7Gleymark Const
Repair & Improvement of Seawall
Litmon, Dumlog 1,170,000.0007-Sep-12100% completed
8Gleymark Const
Repair & Improvement of Seawall
Miramar, Poblacion
2,578,920.0015-Sep-12100% completed
9Tuanson Const
Talisay
4 City
305,805.2031-Aug-12100% completed
10Gleymark Const
Tapul
1,799,464.4522-Aug-12100% completed
Construction of Slope Protection at Pond A- PhaseLandfill,
1
11Gleymark Const
Road Asphalting & Drainage System
Tapul
2,609,000.0022-Aug-12100% completed
12RA Seville Reconstruction of Seawall & Repair
Societas, Cansojong948,500.0019-Oct-12100%completed
13Tuanson Const
Talisay
4 City
305,805.2031-Aug-12100%completed
14WJC Const Construction of Slope Protection
Maghaway Relocation
1,999,442.7718-Sep-12100%completed
15Gleymark Const
Landfill,
Tapul
400,000.0006-Sep-12100%completed
Filling Materials for Cover at Sanitary Landfill - Pond
B
16Gleymark Const
Improvement of Seawall
Litmon, Dumlog
108,000.0006-Sep-12100% completed
17Gleymark Const
Landfill,
Tapul
400,000.0006-Sep-12100% completed
Filling Materials for Cover at Sanitary Landfill - Pond
A
18AAA DiamondRepair of Basketball Goal
Cambawg, Jaclupan 28,578.8004-Aug-12100% completed
19Suarez Builders
Repair of 3 Basketball Board
Lagtang
9,700.7511-Aug-12100% completed
20By admin Repair/Improvement of Barangay Hall
San Roque
34,000.00
50 % acc.
Total - >
127
14,864,657.17
September1Planac Const.
Completion of One (1) Unit Classroom
Campensa, Camp 6250,000.0024-Sep-12100%completed
2 Jocyn Const.Fabrication of Street Markers (3 Sets)
Talisay City
48,500.0009-Sep-12100%completed
3 MC Drilling Installation of One (1) Unit Artesian Deep Well Pump (No 2)Zone 6 Roma, Dumlog
60,385.0027-Sep-12100%completed
4
Topographic Survey
Alipio Prop, Dumlog 15,000.0006-Sep-12100%completed
5
Topographic Survey
Resuena Prop, Dumlog
15,000.0006-Sep-12100%completed
6Tuanson Const.
Replace/Installation of Granite Tiles
Talisay City Hall
95,289.7526-Sep-12100% completed
Bargy. Hall Roof/Rehabilitation & Repainting Day Care CenterLagtang
7Tuanson Const.
49,976.7326-Sep-12100% completed
8Suarez Builders
Improvement & Expansion of Linao Day CareLinao
Center
99,500.0017-Oct-12100% completed
Total - >
633,651.48
October 1Tuanson Const.
Fabrication & Painting of Perimeter Fence Talisay City Hall
399,500.0013-Oct-12100%completed
2Gleymark Const.
Miramar, Poblacion294,227.4017-Oct-12100%completed
Installation of Drainage Outfall & Staircase of Seawall
3Tuanson Const.
Fabrication & Installation of 6 Units Basketball
Talisay
Goal
City
239,590.0012-Oct-12100% completed
Talisay City Central School
4 WJC Const. Restoration of Gabaldon Building
999,740.8306-Nov-12100% completed
5Planac Const.
SanIsidro Day Care 47,630.0018-Oct-12100% completed
Installation of One (1) Unit Artesian Deep Well Pump
6Gleymark Const.
Filling Materials Covering at Sanitary Landfill
Landfill,
Pond ATapul
400,000.0017-Oct-12100% completed
7 MC Drilling Installation of One (1) Unit Artesian Deep Well Pump (No.2)
Zone 6 Roma, Dumlog
60,385.0027-Sep-12100% completed
8 Jocyn Const.Construction of Cesspool with Steel Cover Dumlog
395,600.0025-Oct-12100% completed
9Tuanson Const.
Talisay City Hall
123,000.0017-Oct-12100% completed
Fabrication & Painting of Perimeter Fence - Additional
10WJC Const. Construction of 2-Storey 2-Classroom Building Phase
Talisay
City College
1,079,628.97
40% acc.
2
11RA Seville Bldrs.
Reconstruction of Seawall & Repair Phase Societas,
2
Cansojong964,080.0007-Dec-12100% completed
Restoration/Cleaning/Painting of Talisay Heritage MonumentPoblacion
12Gleymark Const.
97,380.0014-Nov-12100% completed
13Gleymark Const.
Filling Materials Covering at Sanitary Landfill
Landfill,
Pond BTapul
400,000.0014-Nov-12100% completed
14WJC Const.Fabrication & Installation of Steel Grills andPoblacion
Gate
Brgy. Hall 99,785.0030-Oct-12100% completed
15By admin Day Care Center Playground and Fence
Manipis
26,000.0023-Oct-12100% completed
16By admin Improvement of Cay Care Center
YMCA Manipis
22,250.0023-Oct-12100% completed
17By admin Construction of Lawaan 3 Multi-purpose Phase
Lawaan
2
3
336,014.0006-Dec-12100% completed
18By admin Construction of Day Care Center
Pooc
967,058.00
40.08 acc
19Jocyn Const. Improvement of Barangay Hall
Tapul
99,950.0020-Nov-12100% completed
20Jocyn Const. Rehabilitation of Drainage
Tapul
274,900.0020-Nov-12100% completed
Total - >
7,326,719.20
November1Pintor Surveying
Structural Survey
Lawaan 3
225,000.0022-Nov-12100%completed
2Pintor Surveying
Pilipinas Shell, Lawaan 3 255,000.00
Structural Survey
12-Dec-12100%completed
3 WJC Const. Legislative Library
Talisay City Hall
69,500.0016-Nov-12100%completed
4Planac Const.Improvement of School Building
Camp E/S
59,685.0007-Dec-12100%completed
5Planac Const.
Construction Perimeter Fence (L=36m)
Borromeo E/S
183,385.0012-Dec-12100%completed
6 WJC Const. Rehabilitation of Classroom
Tanke E/S
339,200.0018-Dec-12100%completed
7AAA DiamondInstallation
Const.
of One (1) Unit Jetmatic Well Talisay NHS
49,960.8008-Dec-12100%completed
8Suarez Builders
Proposed Drainage
Lagtang E/S
94,955.0018-Nov-12100% completed
9 By admin
Construction of Comfort Room
Telepono, Manipis 30,000.0006-Dec-12100% completed
10By admin Repair and Construction of Drainage System
New Frontier, Bulacao
87,890.0012-Dec-12100% completed
11By admin
Construction of Covered Court
Linao E/S
99,600.00
80% acc
Total - >
1,494,175.80
December1Gleymark Const.
Construction of Seawall
Kalubihan, Poblacion
2,954,132.0012-Dec-12100%completed
2Gleymark Const.
Roadway Backfilling along Seawall
Dumlog-Poblacion1,115,000.0012-Dec-12100% completed
3Gleymark Const.
Asphalt Overlay
Ilang-ilang,Lagtang
1,970,480.0008-Dec-12100% completed
4 Jocyn Const.Improvement of Talisay City Sports Complex
Poblacion
2,500,000.0019-Dec-12100% completed
5Tuanson Const.
Slaughterhouse Building/Rehabilitation
Mohon
1,796,925.6819-Dec-12100% completed
6Gleymark Const.
Asphalt Overlay/Patching Dilapidated Brgy Candulawan
Road
2,136,500.0011-Dec-12100% completed
7Planac Const.
Completion of One (1) Unit Classroom
Hawanay, Tapul
277,000.0026-Dec-12100% completed
8 Jocyn Const.Improvement of Talisay City Sports Complex (Additional Works)
Poblacion
300,900.0026-Dec-12100% completed
9 By Admin
Desilting of Canals
Tapul
11,000.00
63.27% acc.
10By Admin
Construction of Concrete Wall
San Roque
81,682.7520-Dec-12100% completed
11By Admin Improvement of Day Care Center
Manipis
26,310.0024-Dec-12100% completed
12By Admin Improvement of Campensa Primary School Manipis
24,675.0019-Dec-12100% completed
Total - > 13,194,605.43
Grand Total - >138,508,502.89
128

Audit Report Summary for Talisay City

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Audit Report Summary for Talisay City

Enviado por

Direitos autorais:

Formatos disponíveis

Copy furnished:

Republic of the Philippines

May 27, 2013

Republic of the Philippines

May 27, 2013

Very truly yours,

A.4. Financial Ratios

Current Assets less

Current Assets less Current

C. AUDITORS OPINION ON THE FINANCIAL STATEMENTS

Hiring of teaching and non-teaching personnel by the College President at Talisay

We recommend that Management:

b. direct the personnel concerned found responsible thereto to immediately refund

Three (3) completed infrastructure projects with contract amount of P6,914,990.08

Various disbursements for consultancy fees totaling P615,000.00 were charged

We recommend that Management:

The City failed to monitor submission of liquidation reports on fund transfers to

The non-recording of disbursements totalingP16,863,806.61 in the books of accounts,

We recommend that Management:

Various reconciling items totaling P489,779.00 in the bank reconciliation statement

The total balance of Inventory Accounts of P21,696,313.76 is unreliable because of a)

E. STATUS OF IMPLEMENTATION OF PRIOR YEARS AUDIT

Financial and Compliance Audit

Status of Implementation by the Auditee of Prior

Republic of the Philippines

Honorable Socrates C. Fernandez

May 27, 2013

Other Maintenance and Operating Expenses

TOTAL FINANCIAL EXPENSES

NET INCOME / ( DEFICIT )

Payment for purchase of Other Assets

Payment of A/P for CIP and purchase of PPE

Payment of progress billing of contractors for Agency Asset

Payment of progress billing of contractors for PI and RP

Purchase/Fabrication/Construction of PPE, PI and RP

Advances to procurement service for purchase of PPE

Transfer of Funds for implementation of

Cash Flows from Financing Activities:

Other Long Term Liabilities

Payment for Financial Expenses

Payment of Mortgage/Bonds/Loans Payable and

Redemption of Bonds and Other Securities

Net Increase(Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of the Period

Cash and Cash Equivalents, End of the Period

Republic of the Philippines

OFFICE OF THE CITY ACCOUNTANT

NOTES TO FINANCIAL STATEMENTS

e.) Payable Accounts

PART II - DETAILED FINDINGS AND RECOMMENDATIONS

Section 63 of PD 1445 provides that except as may otherwise be specifically provided

Collection for graduation fees amounted to at least P1,696,500.00 as records available

school, office and construction supplies

Talisay City College, City of Talisay

Monthly fee of P40,000.00;

30 days vacation and sick

travelling allowance while on

Implement general policies

Develop guidelines for the

Plan, coordinate, administer

Approve the sem class

Propose an agenda for