Professional Documents
Culture Documents
INTRODUCTION
Angeles City was created on January 1, 1964 with the enactment of R.A. 3700 otherwise
known as the Charter of Angeles City. The City is composed of 33 barangays and was
transformed into a highly urbanized city pursuant to Memorandum Circular No. 83-49 of
the then Ministry of Local Government .
Pursuant to R.A. No. 7160 or the Local Government Code of 1991, the City, like other
local government units, enjoys autonomy in managing, deciding and planning its own
administrative, fiscal and development affairs in conformity with the national
governments thrust for sustainable social and economic growth.
It is under the leadership of City Mayor Edgardo D. Pamintuan who was reelected for his
second term and ably supported by City Vice-Mayor Vicky Vega-Cabigting who was
reelected for her third term and eleven Sangguniang Panlungsod members composed of
six reelectionists, four newly elected and one ABC President.
FINANCIAL HIGHLIGHTS
The following comparative data show the financial condition, results of operations and
sources and application of funds of the City Government of Angeles:
2013
Financial Position
Assets
2,099,618,812.88
Liabilities
1,224,368,642.85
Equity
875,250,170.03
Results of Operations
Income
1,159,784,588.45
Expenses
1,069,746,722.95
Gain/(Loss) on sale
of Disposed Assets
289,628.14
Subsidy/Other
Funds/Donations
25,236,165.25
Excess of Income
Over Expenses
65,091,328.39
Sources and Application of Funds
Appropriations
1,336,173,040.00
Obligations
1,070,698,331.90
Balances
265,474,708.10
2012
Increase/(Decrease)
1,991,205,647.47
1,167,849,196.31
823,356,451.16
108,413,165.41
56,519,446.54
51,893,718.87
1,082,568,138.40
1,010,660,754.70
77,216,450.05
59,085,968.25
134,427.47
155,200.67
32,420,471.73
(7,184,306.48)
39,621,339.44
25,469,988.95
1,329,438,220.35
1,017,730,298.27
311,707,922.08
6,734,819.65
52,968,033.63
(46,233,213.98)
OPERATIONAL HIGHLIGHTS
For CY 2013, the City aimed to implement projects that dwell on the main concerns and
immediate needs of the people of Angeles.
The following are the agencys major accomplishments vis-a-vis their targets during the
year:
Targeted
Programs
20%
Development
Fund
Particulars
Institutional
Development
Projects (1
project)
Physical and
Social
Development
Projects (3
projects)
Economic
and
Community
Development
Projects (35
projects)
% of
Accomplishment
0%
Budgeted
Amount
P12,400,000.00
26%
7,618,149.00
2,000,000.00
19%
34,100,000.00
2,989,611.92
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Expenditures
P0.00
Targeted
Programs
Gender and
Development
Local
Disaster Risk
Reduction
and
Management
Fund
Solid Waste
Development
Program
Health
Services
Particulars
Various
Programs
Quick
Response and
Mitigation
Fund
Hauling,
tipping and
disposal of
residual solid
waste
Design and
construction
of a two
storey
building of
the RLMMC
% of
Accomplishment
80.06%
Budgeted
Amount
P42,560,343.00
28.00%
44,211,930.00
12,494,134.38
96.00%
59,266,351.20
56,725,941.65
97.20%
50,000,000.00
47,986,499.33
P205,944,843.20
P156,270,951.31
TOTAL
Expenditures
34,074,764.03
SCOPE OF AUDIT
The audit covered the financial transactions and operations of the City of Angeles for the
year ended December 31, 2013. The objectives of the audit were to (a) ascertain the level
of assurance that may be placed on managements assertion on the financial statements;
(b) recommend agency improvement opportunities; and (c) determine the extent of
implementation of prior years audit recommendations.
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unreconciled property and accounting records; and (6) absence of land title in the name of
the city to prove the ownership of land valued at P8 million.
To address the above-cited observations, we recommended that management (a) create an
inventory committee to conduct complete inventory count of all inventory items every
end of a semester in accordance with regulations and ensure that a physical inventory
report is submitted and reconciled with the balances per accounting records; (b) require
the GSO employees concerned to submit the Summary of Supplies and Materials Issued
to the Accounting Department and to maintain/update the stock cards in accordance with
regulations and reconcile the balances per stock cards with the balances per accounting
records; and (c) investigate and make appropriate action on discrepancies, if any. We
also recommended that management (a) create an inventory committee to conduct
complete inventory count of all property, plant and equipment at least once a year in
accordance with regulations and reconcile with the balances per accounting records; (b)
require the GSO to update the AREs and maintain a complete file thereof; (c) require the
Accounting Department to maintain Equipment Ledger Cards/subsidiary ledger cards; (d)
investigate and make appropriate actions on discrepancies, if any; (e) require the GSO to
obtain required documents and cause the transfer of land title amounting to P8 million in
the name of the city; (f) require the accounting department to record the donated medical
equipment totaling P12,901,000.00; and (g) investigate and make an appropriate action to
identify and locate the missing property amounting to P36,549,107.28.
The other significant findings and recommendations on the accounts and operations of
the city are as follows:
1. The collectibility of Other Receivables account on livelihood projects of various
cooperatives totaling P1,297,849.66 was doubtful because (1) there were no
available records that can be used to validate them; (2) the accounts remained
dormant for 10 to 19 years; and (3) no action was taken/initiated by management
for their write-off contrary to the guidelines provided under COA Circular No.
97-001 dated February 5, 1997.
We recommended that the City Accountant and other concerned officials comply
with the requirements needed in the write-off of the accounts in accordance with
the provisions of COA Circular No. 97-001 dated February 5, 1997.
2. The City has not transferred the balance of P4,314,919.02 of the Ospital Ning
Angeles Development Fund (ONADF) from the Trust Fund to the General Fund;
hence, the balance was not incorporated in the annual budget of the City contrary
to Sections 308 and 325 of RA 7160.
We strongly recommended that management fully implement the transfer of funds
of the ONADF to the General Fund in accordance with accounting and auditing
rules and regulations to present the correct financial position and results of
operations of the City.
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3. Purchase requests for the procurement of drugs and medicines were not
supported/accompanied by a certification signed by the requisitioning officer that
the drug products being requisitioned or procured fall within and conform with
the Philippine National Drug Formulary (PNDF) Volume I in violation of
Paragraph II.2 of the Department of Health Administrative Order No. 163 s. 2002
dated October 16, 2002.
We recommended that management require the requisitioning officer to attach a
certification that the drug products being requisitioned or procured fall within and
conform with PNDF Volume I, current edition in compliance with Paragraph II.2
of DOH AO No. 163 s. 2002.
Also, we recommended that the list of drugs/medicines in the Purchase Order
should indicate the generic names of the drugs listed in the Purchase Request and
enclosed in parenthesis the brand name of the drug offered by the winning
supplier for easy verification of the items requisitioned and delivered.
4. The remittance of the 30 percent share from the basic Real Property Tax (RPT)
and 50 percent share from Community Tax Certificate (CTC) collections of 12
barangays for 2013 totaling P9,263,585.44 were not remitted within the
prescribed period required under Section 271(d) of RA 7160, thus hampering the
delivery of basic services and the implementation of development programs and
projects of the barangays.
We recommended that management see to it that all barangay shares from the
Real Property Tax and Community Tax Certificate collections are remitted to the
LGUs concerned within the prescribed period in accordance with Section 271(d)
of RA 7160.
5. The remittance of P231,360.47, out of the 5% share from collections of affiliation
fees amounting to P416,314.17 to the Regional Committee on Affiliation and
Training of Students (RCATS) was short by P184,953.70; minimal amount was
expended for the procurement of supplies and equipment; and none for attendance
of affiliation trainers to trainings inspite the substantial balance of P3,389,646.89
of the account at year end in violation of Sections 10.2.1 and 10.2.2 of
Department of Health (DOH) Administrative Order No. 5-A s. 1996 dated
February 17, 1996, thereby defeating the purpose for which the fund was created.
We recommended that management determine the training needs of the hospital
personnel (attendance to seminars of affiliation trainers) and the procurement of
necessary hospital equipment needed chargeable against the trust funds to
maximize the use of the fund, instead of accumulating the same in the bank for
years.
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and program, especially the disaster prevention and mitigation and disaster
preparedness programs resulting in the failure to attain its intended
objectives.
b. Require the ACDRRMC to regularly prepare a Report on the Utilization of
the LDRRMF and submit the same to the COA Auditor. Likewise, require
the ACDRRMC to make the report public through publication and postings
in conspicuous places and its website. Also, require the City Accountant to
comply with the reportorial requirements on the Accounting and Reporting
Guidelines for the Local Disaster Risk Reduction & Management Fund
(LDRRMF) of the LGU, National Disaster Risk Reduction & Management
Fun (NDRRMF) given to LGUs and Receipts from Other Sources; and
c. Require the City Accountant to transfer from the regular funds of the City
the 2012 and 2013 unutilized balances of the LDRRMF amounting to
P17,408,011.66 and P50,665,765.62 to a Special Trust Fund in compliance
with rules and regulations to support disaster risk reduction and
management activities within the next five years.
14. The Annual Gender and Development Plan and Budget and the GAD
Accomplishment Report of the City were not in accordance with the guidelines
set forth under the Philippine Commission on Women (PCW), Department of
Department of the Interior and Local Government (DILG), Department of Budget
and Management (DBM) and the National Economic and Development Authority
(NEDA) Joint Circular No. 2013-01, thereby failing to mainstream gender
perspectives in their policies, programs and projects.
We recommended that management comply with the provisions of
PCW/DILG/DBM/NEDA Joint Circular 2013-01 particularly on the procedures to
be followed in the formulation, development, submission, implementation,
monitoring and evaluation including accounting of results of agency annual GAD
Plans and Budgets (GPBs) and GAD Accomplishment Reports (AR) in order to
mainstream gender perspectives in their policies, programs and projects.
15. Various expenses amounting to P5,535,733.36 on development programs,
activities and projects charged to the GAD budget were not attributable to the
efficiency and effectiveness in addressing realization of the objectives of the
countrys commitments, plans and policies on womens empowerment, gender
equality and gender and development.
We recommended that management thru its GAD Focal Point Systems (GFPS)
take the lead in mainstreaming gender in agency PAPs. As such, they shall
coordinate the preparation of the agency GPB and the GAD AR, monitor its
implementation and report on its results to ensure that the different concerns of
women and men are addressed equally and equitably in their PAPs in accordance
with the provisions of PCW/DILG/DBM/NEDA Joint Circular 2013-01.
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16. The Priority Development Assistance Fund (PDAF) intended for programs and
projects totaling P4,100,000.00 of which P1,500,00.00 has been in the books
since 2008 and a fund transfer amounting to P2,100,000.00 from the
Municipality of Magalang, Pampanga for the scholarship program at the City
College of Angeles, Angeles City remained unutilized as of December 31, 2013
thus, the intended recipients were deprived of the benefits derived therefrom.
These have not been reverted to the Bureau of Treasury in compliance with
Executive Order No. 431 dated May 30, Section 3.2 of COA Circular No. 2012001 dated June 14, 2012 and Supreme Court Decision re: G.R. No. 208566, G.R.
No. 208493, and G.R. No. 209251 all dated November 19, 2013.
We recommended that management revert all dormant/unutilized accounts and
lapsed SAROs to the Bureau of Treasury in compliance with Executive Order
No. 431 dated May 30, 2005 and COA Circular No. 2012-001 dated June 14,
2012 and Supreme Court Decision re: G.R. No. 208566, G.R. No. 208493, and
G.R. No. 209251 all dated November 19, 2013.
17. Funding allocation for the priority development projects amounting to
P65,558,149.00 under the 20% Economic Development Fund (EDF) was less than
the statutory budget requirement of P93,172,997.80 by P27,614,848.80. There
was also a low implementation rate of 57.30% of the programmed priority
projects during the year resulting in the non-attainment of desirable socioeconomic development and environmental management outcomes essential in the
attainment of the constitutional objective of a desired quality life for the
constituents pursuant to the provisions of Joint Memorandum Circular (JMC) No.
2011-11 of DILG and DBM dated April 13, 2011 and DILG Memorandum
Circular No. 2010-138 dated December 2, 2010.
To address the above-cited observations, we recommended the following courses
of action:
a) that management see to it that the budgetary requirement for the 20%
Economic Development Fund (EDF) be appropriated for the formulated
plans/programs and projects in its Annual Investment Plan (AIP)
pursuant to the provisions of Joint Memorandum Circular (JMC) No.
2011-11 of DILG and DBM dated April 13, 2011 and DILG
Memorandum Circular No. 2010-138 dated December 2, 2010;
b) that the Local Development Council (LDC) fully/completely identify the
priority projects in accordance with those covered under Section 3 of the
JMC. The Bids and Awards Committee (BAC) should plan and calendar
the implementation of the projects and stop the practice of bidding them
out at the end of the year since the funding for these should have been
automatically set aside for the purpose upon release of the IRA of the
agency averaging P38 Million per month or P7.6 Million per month for
x
OF
PRIOR
YEARS
AUDIT
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