Republic of the Philippines

COMMISSION ON AUDIT
OFFICE OF THE AUDITOR
Department of Finance
BUREAU OF LOCAL GOVERNMENT FINANCE
8th Floor, EDPC Bldg., BSP Complex, Roxas Boulevard, Manila

March 2, 2018

NIÑO RAYMOND B. ALVINA

OIC Executive Director
Bureau of Local Government Finance
8th Floor, EDPC Building, BSP Complex
Roxas Boulevard, Manila

Attention: ERWIN C. DOMINGO

Acting Chief, FMD

Dear Director Alvina:

Pursuant to the constitutional mandate of the Commission, Paragraph 2, Section 2, Article 9-D of
the Constitution, “[t]he Commission shall have exclusive authority, subject to the limitations in
this Article, to define the scope of its audit and examination, establish the techniques and methods
required therefor, and promulgate accounting and auditing rules and regulations” , Section 122
Paragraph (2) of the Presidential Decree (PD) No. 1445 or the Government Auditing Code of the
Philippines provides that “failure of the officials/employees concerned to submit the documents
and reports shall immediately cause the automatic suspension of the payment of their salaries until
they have complied with the requirements of the Commission.”

We hereby order/recommend the automatic suspension of the salaries of the responsible

officials/employees, particularly in the accounting division, for the habitual delay in the
submission of the Financial Statements beyond the period prescribed for its submission despite the
issuance of Audit Observation Memorandum (AOM) No. 2017-08 (2017) dated November 9, 2017
and after giving prior notice as evidenced by our letter dated January 24, 2018 and February 20,
2018 requesting the submission of the documents/data/information needed in the preparation of
the Consolidated Annual Audit Report (CAAR) for CY 2017.

We express our regret and dissatisfaction for this matter to have reached this point. We expect
your immediate action and cooperation to reach a viable solution for all.

Very truly yours,

MIGUELA S. BAON
State Auditor V
Supervising Auditor