The municipality's cash account was lower than it should have been because a cash advance refund was not entered in the books. This has now been fixed by recording the adjustment.

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

"The Cash in Local Treasury (CLT) account reported balance of ₱ 17,262,316.40 was understated by ₱24,627.98 compared to the validated balance per cashbook of the MT, owing to non -recording in the books of returned cash advance by an accountable officer (AO) as at year-end."

Source Document