Municipality of Matanao

AGENCY ACTION PLAN AND STATUS OF IMPLEMENTATION

Audit Observations and Recommendations
For the Calendar Year 2019
As of June 30, 2020

Agency Action Plan Reason for Action Taken/

Target Status of Partial/Del Action to be Taken
Audit Implementatio Implement ay Non-
Ref Audit Observation Action Person/Dept.
Recommendations n Date ation Implement
Plan Responsible
ation
From To
AAR 1. Disbursements We recommend Take LSB Jan Dec Fully Implemented.
2019 amounting to management to: affirmativ District supervisors
e action Fully provided a letter to
P309,798.60 funded on the Implemented justify the
1. Strictly
from the Special recomme aforementioned SEF
adhere to the ndation disbursements for the
Education Fund (SEF) pertinent provisions considerations on such
were made on various of applicable laws, finding.
transactions/activities rules and regulations
outside of those allowed governing SEF Nevertheless, the
under Section 1 of disbursements to management and the
avoid charging Local School Board
Republic Act No. 5447, committed to comply
expenses that are
Section 272 of Republic with the
administrative in
Act No. 7160 and recommendations of
nature to the fund; the audit team
Section 4 of DepEd- and
DBM-DILG Joint
Circular No. 01 dated 2. Maximize
January 19, 2017, the utilization of SEF
casting doubt on the to attain its objectives
and consider
regularity of
allocating some
expenditures. amounts to projects
and programs that
could addressed the
needs of the other
schools in Matanao
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 especially those
located in the barrios
in the ensuing years.
AAR 2. Payments for the We recommend Make MACCO Jan Jan Fully Implemented .
2019 insurance premium Management to: adjustme Adjusting entry was
coverage for the nting already made to take up
entries. the affected accounts
Property Plant and per JEV no.
1. Direct the
Equipment in the 200010508-01 dated
Municipal
amount of P219,247.55 January 31, 2020. The
Accountant to
were recorded as management already
prepare adjusting
outright Insurance strictly adhere to the
Journal Entry recognition of prepaid
Expense and Other
Voucher (JEV) to portion of the insurance
Maintenance and
correct/reclassify premium of the current
Operating Expense
the affected year.
contrary to the
accounts; and
Philippine Public Sector
Accounting Standards
(PPSASs) 1 on accrual 2. Require the
basis for recording Municipal
transactions thereby Accountant to
resulting in the recognize the
understatement/overstat prepaid portion of
ement of the affected the insurance
accounts. In addition premiums paid
vehicle registration fee, and to record the
computer fee and Insurance
emission test fee Expenses Account
amounting to P6,599.66 upon
were also recorded as consummation of
Insurance Expense the insurance
instead of Taxes, Duties services every
and Licenses account, month thereafter.
further overstating the
Insurance Expense
Account .

AAR 3. There are still at least 47 We reiterate our Market Jan Dec 1. Not Fully
2019 stallholders of the Public recommendations to Implemented
Market that have no the Municipal Mayor
valid and duly notarized to:
LEEMO gave an
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contracts for CY 2019, information
yet are still in operation 1. Direct the dissemination and
while the LGU LEEMO to notices to concerned
continually collects their ensure that stallholders.
rentals, thus, defeating lease However, there are
the purpose of executing applications still stallholders that
a contract and in should only would be able to
disregard to the pertinent be approved make contact with
provision in the Local after all the the LGU.
Revenue Code. requirement
s (e.g. duly Convene market
notarized committee for further
contracts) information and
are asking for a
submitted resolution in effect
and to cause thereto.
the renewal
of the lease
contracts of
all existing 2. Fully
occupants, Implemented.
have them Recommends
duly and establish a
notarized, policy “No
and ensure Lease contract
that No Occupation”.
requirement
s for such Notify the
renewal are stallholders to take
complied action. After 3
with; and successive notices,
2. Direct the no contract still
Municipal establish, stallholders
Treasurer are/have to be
and the ejected and
LEEMO to adjudicate the stall
effect sound for another taker.
managemen
t and
internal
control

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 policies in
the market.

AAR 3. Non-maintenance of We recommend Recomm Jan Dec

2019 certain disposal site Management to: endation
records, inappropriate is noted
a) Partially
composition of the Solid a. Maintain disposal Implemented .
Waste Management site records The MENR Office
(SWM) Board, cluttered containing the had submitted to
residual containment monitoring of the audit team the
area (RCA), lack of water and air records of weight
formal training and quality; of volume
inappropriate protective collected in our
equipment of personnel daily waste
collection (2017-
contravene provisions of
2019) including
Republic Act (RA) No. collection from
9003 thus may affect the requesting
attainment of the barangay. In
objectives of the addition, records
Program. are on file of the
weights of volume
from Jnaury as to
present. We had
submitted semi-
annual reports to
the EMB the Self
compliance
Monitoring Audit
Report (SCMAR)
Anent tot he
monitoring of air
and water, this
office has no
capability to do
such activity. The
LGU has no
device yet to
measure those
elements, the
b. Conduct or skills and the
sponsor formal technical
trainings on proper knowledge
solid waste relative thereto.
management for However, this
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 the site operators, office shall
garbage collectors coordinate and
and other relevant seek assistance
with the
personnel;
appropriate
agency.

b) The personnel in
waste collection
had not undergone
c. Submit a written any formal
notification training relative to
containing the waste
names, addresses development.
and contact Moreover,
numbers of sanitary MENRO office
shall proposeto the
landfill site
LCE for fund
personnel to the allocation and
appropriate coordinate
agencies; appropriate
agencies to assist
us for the conduct
of trainings.
d. Reconstitute the
SWM Board MENRO shall comply
including the with the submission of
following members: written notification
containing the names,
addresses and contact
 Representat numbers of Sanitary
Landfill Facility
ive from the
personnel to the
recycling appropriate agencies
industry; such as DENR EMB,
and MHO BFP and to the
 Representat public.
ive from the
manufacturi
ng or
packaging
industry

However, if
some cannot be
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 included after
exhausting all
efforts, the
Management
can submit their
justifications in
writing;

e. Designate only one

area for waste
sorting and maintain
cleanliness at all
times within the
perimeter of the
RCA facility; and

f. Procure appropriate
protective
equipment for those Allocated 100sqm at
directly performing old dumpsite for the
solid waste construction of waste
management sorting area.
operations.

Proposed fund
allocation in the 2021
Annual Budget for the
procurement of cover
all suit for waste
collection.
AAR 5. Programs, Projects and We recommend the Jan Dec Partially
2019 Activities totalling Municipal Mayor to Implemented Observation was
P36,911,295.05 under direct the well and taken
the 20% Development Implementing Offices seriously and the
Fund were not and other officials Municipal Mayor
optimally utilized as at concerned to expedite conducted a series of
December 31, 2019 the implementation meetings of

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 thus, defeating the and accomplishment concerned agencies
efficient use of of the remaining to expedite
government resources unimplemented and implementation and
and ultimately on-going projects accomplishment of
depriving the funded under the 20% remaining
constituents of timely Development Fund so unimplemented and
and value-added that such projects on going projects
services and benefits could immediately funded under the
could have been derived serve the purpose for 20% LGDF
therefrom. which they were
proposed. Should
management sense
that projects are not
feasible for
implementation, it
may be practical to
realign them to other
viable projects.
Moreover, proper
planning and
identification of
doable development
PPAs should always
be considered by
Management to
ensure efficient and
effective use of
government
resources.

AAR 6. Unreleased checks We recommend System is MACCO Jan Dec

2019 totaling P1,230,699.25 Management to direct installed MTO Fully
with the Implemented
remained unadjusted in the Municipal MTO
Accountant to:
the books contrary to
Commission on Audit a. Record the The total unreleased
(COA) Circular 96-011 adjusting entries checks totalling to
dated October 2, 1996, to restore the P1,230,699.25 shall no
thereby affecting the amount of longer be adjusted in as
accuracy and fair unreleased checks much as these checks
to appropriate were already forwarded
presentation of the to the payess as of
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 reported cash account cash accounts; and January 31, 2020.
balances.
b. Review the
records of the
A system shall be
Municipal explored and
Treasurer for implemented in
unreleased checks coordination with the
at year-end. municipal Treasures
and other concerned
Direct the Municipal offices to strictly
Treasurer to – implement the
recommendation.
c. Prepare a
summary of
unreleased checks
for submission to
the Municipal
Accountant to
facilitate the
preparation of
bank
reconciliation
statements.

AAR 7. Non observance of the We recommend the Jan Dec Fully

2019 preparation and Local Chief Implemented
submission of Executive to: The management
documentary through the
requirements, mandated 1. Require the Municipal Planning
by Department of Municipal and Development
Interior and Local Engineering Office assured the
Government (DILG) Office for the audit team that all
Memorandum Circular immediate lacking documents
No. 2019-71 dated May preparation of the shall be submitted to
20, 2019 for the two (2) documentary their level.
projects under the Local requirements and
Government Support the submission
Fund- Assistance to thereof to the
Municipalities (LGSF- concerned office
AM) Program in the as required in the
total amount of 6.5.4 of the DILG

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 P5,774,000.00, may Memorandum
results to the imposition Circular; and
of sanction/s, thereof
provided. 2. Ensure strict
compliance with
the relevant
provisions of the
DILG
Memorandum
Circular No.
2019-71 dated
May 20, 2019
relative to the
implementation of
Local Government
Support Fund -
Assistance to
Municipalities
Program.

AAR 8. The Municipality We recommend the Jan DEc

2019 utilized only Municipal Mayor to: Implemented
P21,651,711.33 or
The recommendation is
53.86% of its Local 1. Consider
noted and various plans
Disaster Risk redirecting and programs were
Reduction Management priorities from reverted to address
Fund (current and regular programs immediate needs of the
continuing and activities to constituents,
appropriations) totaling other major
P40,200,169.54, thus, concerns that
ignoring the thrust of needs immediate
the State to build action by the LGU
disaster resilient especially
communities by purchasing of lots
enhancing disaster for relocation sites
preparedness and of those homeless
response capabilities of victims of
constituents. calamity;
The projects, plans and
2. Require the programs of
LDRRM Officer incorporated in the

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 to fully implement annual MDRRM Plan
on CY 2020 the and Budget for CY
unimplemented 2019 were
implemented.
projects, programs
and activities of
the Annual
Municipal
Disaster Risk
Reduction
Management Plan
and Budget for
CY 2019; and

3. Maximize the
utilization of
LDRRMF by
formulating
programs/projects/
activities
particularly for
disaster
preparedness,
prevention and
mitigation so that
the LGU’s
ultimate objective
of protecting the
lives and
properties of its
constituents will
be realized.

AAR 9.Two (2) projects We recommend Fast track MEO Jan DEc
2019 amounting to Management to: the Fully The team (SPMO) was
P2,587,500.00 funded implemen Implemented created to monitor the
tation of project status and
by the Department of
1. Require the the address the causes of
Interior and Local projects delayed in the
Government (DILG) offices/officials
implementation of the
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 under the Local concerned to special projects.
Government Support identify the gaps
Fund- Assistance to in the The two mentioned
projects are already on
Disadvantaged determination and
going and expected to
Municipalities (LGSF- implementation of be finished before the
ADM) Program, were development year ends.
not fully implemented projects thereby
as at year-end due to come up with
delayed procurement corrective
process and lack of measures to
monitoring of the ensure optimum
concerned office, utilization of
thereby depriving the funds and timely
constituents of the delivery of value-
timely delivery of added services and
services and intended benefits to
benefits that could be constituents; and
derived therefrom.
2. Revisit the
procurement
process of the
Municipality that
is identified as one
of the causes for
delayed
implementation.

AAR 10.The net take home pay We recommend the Recomm MACCO Jan Dec The provision
2019 of various employees Municipal Mayor to: endation HRMO Fully stipulated in the GAA
was below the 1. Require the is noted Implemented pertaining to the
minimum P5,000.00
mandated minimum Human Resource
net take home pay of
amount of P5,000.00 Development employee is already
due to the Officer (HRMO) strictly adhered and
accommodation for to ensure that the implemented.
payroll deduction of provisions
employee obligations prescribed for a
other than those stated minimum monthly
under Section 52 of the net take pay of
Republic Act No. P5,000.00 under
11260 or the General the GAA FY 2019
Appropriations Act of and onwards be
2019. adhered to.
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 2. Require the
Municipal
Accountant to
strictly enforce the
provisions
stipulated in the
GAA pertaining to
net take-home pay
to promote an
efficient and
effective public
service by
ensuring that
government
employees have
enough resources
to support their
daily sustenance
until the next pay
day.

3. Advise the
concerned
employees to pay
and/or transact
directly with the
private
institutions, if they
opted to avail
private loans, so
that their net take
home pay will
comply with the
provision of the
GAA.

AAR 11.The Municipal We recommend that Jan Dec

2019 Government did not the Local Chief Fully Submitted a
furnish the Auditor’s executive require the Implemented reply/comment on the
GAD Focal Person to foregoing audit
Office with the duly
observation with
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 DILG approved GAD submit a copy of the regards to GAD Plan
Plan and Budget and DILG approved and Budget (GPB) and
the corresponding GAD annual GAD Plan and GAD Accomplishment
Budget (GPB) and Report (GAR)
Accomplishment
the corresponding CY2019.
Report in conformance
with the provisions of GAD
Submitted the copy of
COA Circular No. Accomplishment the DILG approved
2014-001 dated March Report to the COA Annual GAD Plan and
18, 2014, hence failing Audit Team within Budget and GAD
to support the the period prescribed Accomplishment
government in its under COA Circular Report CY2019 to
commitment to uphold No. 2014-001. COA>
the law on gender
equality.

Agency Sign-Off:
__________
(SGD) VINCENT F. FERNANDEZ ________________
Municipal Mayor Date

Note: Status of implementation may either be (a) Fully Implemented, (b) On-going, (c) Not Implemented, (d) Partially Implemented, or (c) Delayed

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