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The Municipality of Dumanjug, Cebu has been classified as a third (3rd) class
Municipality based on the latest classification of municipalities issued by the
Department of Finance.
Pursuant to RA No. 7160, otherwise known as the Local Government Code of
1991, the Municipality, like other local government units, enjoys total
independence in managing, deciding, and planning its own administrative, fiscal
and development affairs in conformity with the national governments thrust for
sustainable social and economic growth.
During the year, the agency realized a total income of P71,579,753.27 derived
from its share of the Internal Revenue Allotment, collections of realty and
business taxes, other taxes and licenses which showed an increase of 11.45%
as compared to last years income of P64,225,453.71. Expenses for personal
services amounted to P31,803,058.31 which is 7.87% higher than that of last
year of P29,482,383.71. Maintenance and other operating expenses had also
increased by 9.77% from P23,583,999.70 in CY 2009 to P25,888,170.99 in CY
2010.
It has also implemented several infrastructure projects mostly financed from
financial assistance received from the national government and the provincial
government of Cebu based on the report submitted to us as of December 31,
2010. (Annex 3).
SCOPE OF AUDIT
An audit was conducted on the accounts and operations of the Municipality of
Dumanjug, Cebu for the calendar year ended December 31, 2010. The audit was
made to ascertain the regularity of disbursements, the reliability of financial
reports and the adequacy of accounting records.
OPINION IN THE STATE AUDITORS REPORT ON THE FINANCIAL
STATEMENTS
The auditor rendered a qualified opinion on the financial statements due to the
non-recording of parcels of land with total market value of P58,783,037.06 and
assessed value of P9,453,090.00, registered in the name of the Municipality per
Assessors records, and non-provision of allowance for depreciation on assets
costing P41,029,045.94, constituting 47.8% of total depreciable assets of
P85,844,001.74. Moreover, both cash in bank and current liabilities were
understated by P1,635,672.20 due to the non-reversion of unreleased and stale
checks at year end.
the
significant
findings
and
the
corresponding
5. Savings deposit of the Municipality maintained with the Rural Bank of Barili,
Inc., a private bank, exceeded the P500,000.00 maximum insurance
coverage of the Philippine Deposit Insurance Corporation thereby exposing
public funds to possible risk in case of bank closure or bankruptcy.
We recommend that management must keep the level of its deposits at
RBBI within the insurance coverage limit of the PDIC to protect its funds
from risks of loss. Accumulated deposits should be transferred to the LBP
account once these exceed the insurance coverage. Encashment of checks
from the savings deposits should be discouraged and disbursements should
be made only through the current account. In order to avoid the risk involved
in encashing checks from the LBP account, cash advance checks for payroll
or MOOE should be drawn and deposited earlier to allow enough time for
clearing before these can be withdrawn or credited to the individual
employees savings accounts maintained at the RBBI.
STATUS
OF
IMPLEMENTATION
RECOMMENDATIONS
OF
PRIOR
YEARS
AUDIT