A cash advance refund received before the end of the year was not entered in the municipality's books, so the reported cash balance was lower than the actual amount.

Why It Matters

Recommended Actions

• Require the MT and MA to (a) regularly reconcile their respective records for the early detection and correction of errors
• And (b) based on the verified OR reflecting the correct amount of the refund, prepare the necessary adjustments in the book to arrive at the correct balance of the CLT account.

Original Audit Finding Excerpt

"understatement of the Cash in Local Treasury (CLT) account reported balance as of December 31, 2022 amounting to ₱17,262,316.40 by ₱24,627.98 owing to non-recording in the books of returned cash advance by an accountable officer (AO) as at year-end"

Source Document