PART III - STATUS OF IMPLEMENTATION OF PRIOR YEAR’S

UNIMPLEMENTED AUDIT RECOMMENDATIONS

Evaluation of actions taken by Barangay Canantong regarding the audit
recommendations contained in the previous Annual Audit Reports revealed out of six (6)
recommendations, one (1) was fully implemented, two (2) was partially implemented and
the rest were not fully implemented, as enumerated and discussed below:

Reason for
Observations and Ref. Management Status of Partial/Non
Recommendations Action Implementati Implementat
on ion

1. Deliveries of consumable AAR No Not The

items were not verified due CYs management implemented managemen
to non-submission of 2014-15, action taken t reason out
copies of contracts. Obs. that non-
Purchase/job orders and No. 8 submission
non-notification of was
scheduled dates of impractical
deliveries to the office of because the
the auditor. Barangay
was far
We recommended that the from the
Punong Barangay and the Office of
Barangay Treasurer the Auditor.
observe strict compliance
with COA Circular No. 96-
010 regarding the
submission of all contracts
to the office of the Auditor
within five (5) days after
perfection and notices of
deliveries within twenty-
four hours from acceptance
to ensure timely
review/evaluation of
contracts and inspection of
deliveries.

2. Due to the negligence of AAR No Not No transfer

the previous and present CYs management implemented of title took
administration to take 2014-15, action taken effect within
immediate action in titling Obs. the period.
the donated/purchased No. 3
land, its ownership is still

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 Reason for
Observations and Ref. Management Status of Partial/Non
Recommendations Action Implementati Implementat
on ion
not consolidated on the
name of the barangay.

We recommended that the

Punong Barangay effect the
immediate transfer of titles
of donated/purchased land
in the name of the
Barangay. He is also
advised to make
representation with the
Sangunian to appropriate
funds needed for the
transfer of the subject land.

3. Several disbursements were AAR The lacking Partially Not all

paid amounting to CYs supporting implemented supporting
₱96,827.20 during 2014 2014-15, documents documents
and 2015 despite Obs. on certain were
incomplete documentation, No. 2 DVs were submitted.
contrary to the “Policies furnished by
and Procedures on the
Disbursements”, as concerned
provided in the system and personnel.
Procedures Manual on the
Management of Barangay
Funds and Property,
creating doubt on the
validity of transactions.

We recommended that the

Punong Barangay strictly
comply with all the
required supporting
documents for each claim
before approval and
effecting payment to
establish validity on the
covering transaction. He
should exercise greater
control in the issuance of
the Punong Barangay’s

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 Reason for
Observations and Ref. Management Status of Partial/Non
Recommendations Action Implementati Implementat
on ion
Certificate (PBC) for
Barangay Check
Disbursement, with a view
of ensuring the
completeness of
documentation and
approval for every
Disbursement Voucher

4. The 20% Development AAR Prepared Fully

Fund of the Barangay was CYs 20% Implemented
not utilized solely to bring 2014-15, Development
socio - economic Obs. Plan in
development and No. 1 accordance
environmental outcomes with the
among the constituents in projects
violation of Joint Circular mandated by
No. 2011-01 of the DILG the said
and the DBM. Circular.

We recommended that the

Council design/prepare the
20% Development plan in
accordance with the
projects mandated under
Joint Memorandum
Circular 2011-01 of the
DILG and the DBM. The
Punong Barangay should
ensure strict compliance
with the guidelines. Any
subsequent payments not
appropriately charged
against such fund in the
future shall be suspended in
audit.

5. Monthly Report of AAR No Not No Monthly

Accountability for CYs management implemented Report of
Accountable Forms was 2014-15, action taken Accountabil
not prepared and submitted Obs. ity for

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 Reason for
Observations and Ref. Management Status of Partial/Non
Recommendations Action Implementati Implementat
on ion
to the Auditor, causing No. 7 Accountable
difficulties in establishing forms has
the accountabilities of the been
Barangay Treasurer. prepared

We recommended that the

Barangay Treasurer prepare
and submit the Monthly
Report of Accountability
for Accountable Forms for
easy determination of the
accountabilities.

6. Value Added Taxes AAR No Partially The

withheld were not remitted CYs management implemented managemen
within ten (10) days to BIR 2014-15, action taken t reason out
in violation of Revenue Obs. that non-
Memorandum Circular No. No. 7 remittance
23-007 dated March 20, was not
2007, thus depriving done
concern agency of regularly
additional income that because
could be utilized for their balances
operations. were too
minimal to
We recommended that remit.
strict compliance with the
existing rules and
regulations pertaining to
remittance of withheld
taxes to the concerned
agency be observed.
Require the Municipal
Accountant who has the
accounting control on the
amount of taxes withheld
for a given month to
prepare the remittance list
so that the barangay
treasurer could issue the
corresponding check for

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 Reason for
Observations and Ref. Management Status of Partial/Non
Recommendations Action Implementati Implementat
on ion
remittance to the BIR
collection agent assigned at
the municipality

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