The municipality's recorded cash balance was lower than the actual amount because some cash advance repayments received before year-end were not recorded in the books.

Why It Matters

Recommended Actions

• Require the (a) Municipal Treasurer (MT) and Municipal Accountant (MA) to (i) execute full automation of collections to minimize manual interventions, reduce errors, and enhance efficiency and transparency in the reporting of collections
• And (ii) regularly reconcile their respective records for the early detection and correction of errors
• And (b) MT to direct the LO to closely verify the RCDs submitted by AOs particularly to ensure that all issued accountable forms are reported

Original Audit Finding Excerpt

"the reported balance of the Cash Local Treasury (CLT) account amounting to ₱30,141,696.25, was understated by ₱4,999.98 due to unrecognized collections from returns of cash advances as of year-end"

Source Document