Executive Summary: A. Introduction
Executive Summary: A. Introduction
Executive Summary: A. Introduction
A. Introduction
The City of Pasig continues to transform and evolve to maintain her standing as one
of the premier cities in the country, centered on the need of the people for a peaceful,
clean, green and livable city. Accomplishments in CY 2018 were anchored on a
Comprehensive Development Plan covering different plans and programs of:
The City is headed by Mayor Robert C. Eusebio, with its Vice Mayor and
14 Councilors. It has one representative in the national congress. It has a total
personnel complement of 8,224 consisting of six co-terminus, 863 permanent,
4,906 casual, 2,393 job order employees, 21 consultants and 35 contractual teachers.
i
B. Financial Highlights
For CY 2018, the City’s appropriations, obligations and balances are tabulated
hereunder:
Changes in its Financial Position and Financial Performance are also summarized
below:
C. Operational Highlights
In line with the City’s thrust for development, 80 programmed projects for CY 2018
were reported completed, to wit:
ii
In addition to the above accomplishments, the City has gained the following awards
as reported in 2018, among others:
2018 Most Business Friendly LGU Award - for improving the business and
investment climate thru innovative governance resulting in the increase of
enterprise and significant increase in total investment generated in 2017 over
2016.
ISO 9001:2015 Certificates for its Business Permit and Licensing Services, its
Center for Dialysis, Healthy Lifestyle, Ambulatory Surgery, Maternity Clinic
and Newborn Care of Pasig City (CHAMP) and its Pasig City Children’s
Hospital (Child’s Hope), valid until August 28, 2020, June 4, 2020 and
September 11, 2020, respectively.
The audit covered the accounts and operations of the City of Pasig for the period
January to December 31, 2018. The objectives of the audit are to (a) be able to lend
credence to Management’s assertions on the financial statements; (b) recommend
agency improvement opportunities; (c) determine compliance with existing laws,
rules and regulations; and (d) determine the extent of implementation of prior years’
audit recommendations.
1. The Land account balance of P1.024 billion does not reconcile with the Report on
the Physical Count of Property, Plant and Equipment (RPCPPE) amounting to
iii
P205.573 million, showing a discrepancy of P818.159 million caused by some
items that are without cost in the RPCPPE. Real Property Ledger Cards (RPLC)
are maintained for 13 lots only totaling P33.692 million, while the description of
10 items totaling P15.012 million is more appropriately classified as Road
Networks.
a. Require the City General Services Officer (CGSO) to exert more effort to
come up with a more reliable RPCPPE complete with specifications and land
use based on actual physical count and reconcile the same with the accounting
records including the acquisition cost or fair value whichever is applicable;
and
b. Direct the City Accountant to (a) maintain and update the Real Property
Ledger Cards; (b) coordinate with CGSO in reconciling the records with the
physical count; and (c) effect the necessary adjustments in the books so that
reliable balance of Land account is presented in the City’s financial
statements.
2. The P28.621 billion balance of the Property, Plant and Equipment (PPE)
accounts, except Land, could not be reliably established due to (a) the
non-reconciliation of property and accounting records with a total discrepancy of
P92.844 million; (b) misclassification of PPEs totaling P476.538 million;
(c) non-provision of depreciation for properties totaling P1.612 billion and
lapses/errors noted in the recording and in providing for depreciation, all contrary
to the applicable provisions of the New Government Accounting System (NGAS)
Manual for Local Government Units (LGUs), International Public Sector
Accounting Standards (IPSAS) and Government Accounting and Auditing
Manual (GAAM).
We recommended that:
Conduct regular and complete physical count of all properties of the City;
iv
b. The City General Services Officer –
Issue and update Property Acknowledgement Receipt (PAR) for all PPE
items, starting with the current and recent years’ acquisitions until all
items are covered with PAR and thereafter, renew/update the PAR every
three years or whenever there is transfer of accountability;
Properly prepare and maintain the required Property, Plant and Equipment
Ledger Card (PPELC) for each class of PPE, listing therein the data as to
its acquisition, description, custody, useful life and other necessary
information;
Prepare the SOD properly and ensure that the required information are
provided, such as the carrying value and the accumulated depreciation that
should agree with the controlling account balances so that discrepancies
could be readily identified and corrected.
v
(CSO) and the City Accounting Office (CAO), respectively; and
(c) inconsistencies and delays in the recording of acquisitions and issuances of
supplies and materials, all contrary to the applicable provisions of the NGAS
Manual for LGUs.
We recommended that:
b. The City General Services Officer and the City Accountant properly maintain
and update the stock cards and supplies ledger cards, respectively, and
reconcile these records regularly;
c. The City General Services Officer, the Central Supply Officer and the City
Accountant:
Come up with a system that will ensure that all acquisitions and issuances
of supplies and materials are timely recorded in the books; and
See to it that the required documents in the acquisition and issuance of the
inventories, such as the Inspection and Acceptance Reports (IAR),
Requisition and Issue Slip (RIS) and Summary of Supplies and Materials
Issued (SSMI), bear complete details as to the control number, dates and
signature of the accountable personnel.
1. The Accounts Payable (AP) balance of P1.240 billion is not reliable due to errors
in classification amounting to P1.133 million; settlements totaling
P29.249 million which were debited to the account although no payables were
set-up; and liabilities totaling P82.289 million which were not supported with
documents to prove the validity of these claims.
b. Ensure that the Journal Entry Vouchers (JEVs) on the set up and settlements
of payables are supported with complete documentation and with information
on the details of the related transaction; and
vi
2. Checks totaling P65.07 million, not yet released to payees as of year-end, were
not recorded in the books resulting in the understatement in assets and liabilities
by P44.61 million and P57.89 million, respectively and overstatement of the
equity by P13.28 million.
We recommended that the City Accountant record in the books all unreleased
checks at the end of the year, to ensure that the transactions and events covered by
these checks are recorded during the year when they were occurred and
recognized in the financial periods to which they relate.
We recommended that:
vii
Review the documents supporting the payments made for gasoline used
during Typhoon Ompong for adjustment of the advance payment to the
appropriate account;
5. The insurance premium totaling P11.234 million paid by the City for the insured
assets of P2.590 billion or 14.14 percent only of its total insurable properties of
P18.323 billion is inadequate to indemnify the City against any damage to or loss
due to fire, earthquake, storm or other fortuitous events/casualty contrary to
Republic Act (RA) No. 656, otherwise, known as the Property Insurance Law.
6. The loan availments of P53.95 million or 67.45 percent and P3.85 million or
67.89 percent out of the P80 million and P12 million appropriations for Easy
Pondong Pasigueño (EPP) and the Cooperative Development Loan Fund (CDLF),
respectively, indicate that the appropriation provided to the two programs is in
excess of the actual needs of the intended beneficiary, which could be used for
other programs/projects. Moreover, erroneous entries made resulted to excess in
cash transferred from the General Fund to the Trust Fund by P0.82 million and a
net discrepancy of P14,000 between the General Ledger (GL) and the Subsidiary
Ledger (SL) balances.
We recommended that:
a. The City Council revisit the ordinances and review the accomplishments for
possible adjustment in appropriation deemed excessive which can be
viii
reprogrammed for other programs/projects or formulate new policies that will
maximize the fund utilization in favor of the target beneficiaries of the project;
c. The responsible officers exert more effort to collect the outstanding accounts
and act fast on delinquencies to make the borrowers aware that the loans are
collectible when due and to discourage others from not paying their loans.
We recommended that the City Accounting Office and HRMO coordinate closely
in working on the monthly withholding tax of employees and tax remittances to
the BIR, see to it that their respective personnel tasked to deduct and/or remit
taxes exercise care and diligence so that correct taxes are withheld and remitted
on time to avoid discrepancies and penalties for late remittances. The Accounting
personnel in charge of withholding taxes from suppliers/contractors, likewise,
ensure that appropriate types of taxes are withheld and remitted within the
prescribed period.
The audit charges amounting to P10,015.00 was settled during the year while audit
suspension amounting to P231,791,487.36 was settled in the first quarter of 2019
upon submission of the required documents.
Of the 77 audit recommendations contained in the CYs 2016 and 2017 Annual Audit
Reports (AARs), 29 or 37.66 percent were fully implemented, 34 or 44.16 percent
were partially implemented and 14 or 18.18 percent were not implemented.
ix