The Municipality kept ₱1,151,309.88 of unused government funds in its books without proper records or subsidiary ledgers, and did not return the money to the national government or reconcile the accounts with the source agencies, violating COA rules.

Why It Matters

Recommended Actions

• Require the MA, in coordination with other concerned Municipal Offices to (a) exert efforts in identifying the source of funds for the unused balances amounting to ₱1,151,309.88 lodged to the Due to NGAs accounts, otherwise, revert the amount to the National Treasury
• And (b) prepare SL for each fund transfers and conduct regular and periodic verification, analysis, and validation of the existence of fund transfers to source NGAs.

Original Audit Finding Excerpt

"The unutilized balances of fund transfers for completed PPAs in the previous years totaling ₱1,151,309.88 lodged to the Due to NGAs account remained unsettled due to absence of subsidiary ledgers (SL) contrary to COA Circular Nos. 2012-001 and 2016-005 dated June 14, 2012 and December 19, 2016, respectively."

Source Document