Audit & Compliance

Meals Procured via SVP Without Framework Agreement

₱6.12M (Procurement Compliance)

₱6,117,351.10 spent on meals and snacks through repeated Small Value Procurement (SVP) throughout CY 2025 without considering Framework Agreement under GPPB Resolution No. 27-2019. May constitute splitting of requisitions. Reiteration of prior year finding.

LDRRMF Under-Allocation

₱380.0K (Fund Management)

Required 5% LDRRMF based on regular income excluded ₱7.6M Economic Enterprise receipts, resulting in ₱380K under-allocation. QRF understated by ₱114K, Mitigation Fund by ₱266K.

CIP-Buildings Account Discrepancy

₱1.10M (Financial Management)

Construction in Progress (Buildings) account in financial statements (₱509,755.82) does not reconcile with actual ongoing project costs (₱1,606,000.00 for Barangay Golden Child Development Center Phase 2), resulting in a discrepancy of ₱1,096,244.18. Municipal Accountant failed to record 60% work accomplishment. IPSAS No. 1, Paragraph 25.

Unreleased Check Not Recognized in Liabilities

₱878.5K (Financial Management)

Year-end unreleased check amounting to ₱878,549.46 (DV 100-25-12-1741, Check 595414, St. Ruiz Agro Farm Supply) not recognized in corresponding liability account. Check was only claimed by payee in January 2026. Violates PD 1445 Section 74 and IPSAS Paragraph 27.

Petty Cash Fund Used for Financial Assistance

₱2.46M (Financial Management)

PCF was predominantly used for payments of various financial assistance (medical, educational, burial, food, emergency shelter) totaling ₱2,095,690.00 out of ₱2,458,319.79 in replenishments (85%). Replenished more than once per month, contrary to COA Circular No. 97-002.

Donations in Kind Without Complete Documentation

₱264.0K (Governance)

Donations in kind totaling ₱263,995.00 to barangays and schools were not supported with complete documentation. Deficiencies include: no proof of request by recipient barangay/SB resolution, lack of acknowledgement receipts, items delivered not matching requested quantities, acknowledgement receipts signed by different persons than requestors.

Brand Names in Technical Specifications

₱504.7K (Procurement Compliance)

₱504,681.00 worth of ICT equipment, construction supplies, and refrigerator procured with brand names (Asus, Apple, Samsung, Acer, LG, Boysen, Sonak) specified in Purchase Requests and RFQs. Violates Section 11 of IRR of RA No. 12009.

CCTV Procurement Awarded to Ineligible Supplier

₱1.15M (Procurement Compliance)

Procurement and installation of CCTV cameras totaling ₱1,152,740.00 awarded to Alphin Trading and Construction, whose BIR Certificate of Registration does not cover CCTV equipment (registered for retail sale of construction supplies only). Violates Section 63.3 of IRR of RA No. 12009.

Non-Preparation of Procurement Monitoring Report

BAC failed to prepare and submit Procurement Monitoring Report within 14 calendar days after end of each semester, as required by Section 42.1(k) of IRR of RA No. 12009 and GPPB Circular No. 02-2020. Municipality excluded from GPPB List of Compliant Procuring Entities for H1 FY 2025.

Unsupported Hazard Pay Disbursement

₱110.6K (Financial Management)

₱110,550.62 in Hazard Pay to MSWDOs and SWOs for CY 2025 not supported with proof of actual services rendered under hazardous conditions. Only November justified (State of Calamity). Paid on commutable monthly basis instead of actual exposure basis. Violates IRR of RA No. 9433 and RA No. 7305.

Unnecessary Gaming Laptop Procurement

₱115.0K (Financial Management)

₱115,000.00 gaming laptop (ASUS TUF F15) procured for Assessor's Office GIS operations despite availability of less expensive units with similar functionality. Brand-specific PR/RFQ violates Section 11.2 of RA No. 12009. Unnecessary expenditure under COA Circular No. 2012-003.

Unrelated GAD Expenditures

₱4.53M (Governance)

₱4,527,500.00 in GAD Plan and Budget for CY 2025 charged to programs not clearly addressing gender-related issues: Financial Assistance under AICS (₱994,500), Clean and Green Program (₱630,000), Sports Development Program (₱2,150,000), Educational Assistance (₱153,000), Maintenance of public plaza (₱600,000). GAD AR submitted late (March 2, 2026) without supporting documents.

Unnecessary and Unallowable Expenses

₱269.7K (Financial Management)

Disbursements for unnecessary advertising (₱85.5K), SB session snacks (₱122K), and unauthorized rice subsidy to national officials (₱62.1K). SEF used for non-priority items (₱108K).

Incomplete Contract Documentation

Contracts submitted late beyond the 5-day prescribed period. Common missing documents: PhilGEPS certificates, construction safety programs, BAC resolutions.

Breeding Stocks Ghost Account

₱110.0K (Asset Management)

₱110,000 in breeding stocks (11 cows) purchased before 2000 already dead and dispersed. Documents could not be located after Municipal Agriculturist passed away.

Dormant Receivables

₱613.6K (Revenue Collection)

Outstanding receivables for 29+ years from livelihood projects, KKK recipients, and various programs. No subsidiary ledgers maintained.

Delinquent Real Property Taxes

₱839.2K (Revenue Collection)

Persistent delinquencies in real property tax collection. LGU never fully enforced levy, advertisement, and sale remedies under RA 7160.

Idle MRF Equipment

₱13.50M (Asset Management)

₱13.5M compactor and granulator purchased in 2019 remained unused through 2022, generating ₱5.13M in wasted depreciation and ₱2.62M in dead interest charges.

Manual Payroll Cash Advances

₱14.85M (Financial Management)

JO and COS personnel paid through manual payroll system and cash advances totaling ₱14.85M in CY 2024, including ₱534K clothing and ₱1.6M communication allowances. ATM payroll adopted May 2025.

Solid Waste Management Non-Compliance

₱13.50M (Environmental Compliance)

Non-compliance with RA 9003 — open dumpsite maintained, no sanitary landfill, MRF machineries unutilized for years.

Land Titling Gaps

₱25.70M (Asset Management)

Multiple parcels of land lacking Transfer Certificates of Title (TCTs), covered only by Tax Declarations contrary to GAAM requirements.

PPE Account Not Reconciled

₱90.20M (Asset Management)

Property, Plant & Equipment records not reconciled with subsidiary ledgers. No complete Report on Physical Count of PPE submitted annually. Incomplete ledger cards and property cards.

Irregular Cash Advances

₱1.27M (Financial Management)

Irregular cash advances to officials including ₱1.27M to Mayor Calimlim (2014) and delayed liquidations throughout the audit period.