The municipality's reported cash balance was lower than it should have been because some cash collections from returned cash advances were not recorded in the books by year-end. This happened because the officer responsible for recording them was on leave, and the collections were left in a vault and only discovered later.

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 CLT account amounting to ₱30,141,696.25, was understated by ₱4,999.98 due to unrecognized collections from the returns of cash advances as of year-end."

Source Document