The municipality's bank account balance on the books was lower than it should be by about ₱14.2 million because old or cancelled checks were not written back into the account and some bank adjustments were not recorded.

Why It Matters

Recommended Actions

• Require the MA and MT to conduct regular reconciliation of their cash records to immediately address the deficiencies thereof
• (b) record and adjust immediately all unrecorded transactions and reconciling items found in their respective records
• And (c) MA to (i) record disbursements in the CKDJ based on the Report of Checks Issued to limit the occurrence of unreleased checks recognized as disbursements at year-end
• (ii) make the necessary adjustments for the stale/cancelled checks
• And (iii) review the BRS for the unrecorded debit/credit memos and make representation with the bank for errors found.

Original Audit Finding Excerpt

"The reported balance of the CIB-LCCA as of December 31, 2021 amounting to ₱324,474,509.39 was understated by ₱14,164,727.46 owing to the (a) non-reversion of stale/cancelled/unreleased checks to the CIB-LCCA; and (b) unrecognized bank credit and debit memos and other reconciling items contrary to Section 59 of the Manual on the New Government Accounting System (NGAS) for Local Government Units (LGUs), Volume I and COA Circular No. 96-11 dated October 2, 1996."

Source Document