Bislig City Executive Summary 2017
Bislig City Executive Summary 2017
Bislig City Executive Summary 2017
A. Introduction
1. Bislig became a town on January 21, 1921 per Executive Order No. 62 issued by
Gov. General Francis Burton Harrison on December 28, 1920. By virtue of
Republic Act No. 8804 which was approved by His Excellency President Joseph
Estrada on August 18, 2000, Bislig became a component city. It was duly ratified
and approved in a plebiscite conducted on September 18, 2000. Its vision is, “Bislig,
a vibrant and livable city; a leading producer of agricultural and aquamarine
products, and an eco-tourism destination in Southern Philippines.”
2. The audit was conducted in accordance with the applicable legal and statutory
requirements, and the Philippine Public Sector Standards on Auditing. Those
standards require that we plan and perform the audit to obtain a reasonable basis for
our conclusions.
3. The audit covered the accounts and operations of the city government for the year
2017 and was aimed at ascertaining the propriety of financial transactions,
management’s compliance to prescribed rules and regulations and the fairness of
the presentation of the financial statements. Value for money was also conducted to
determine whether programs, projects and activities were attained in the most
efficient, effective and economical manner.
B. Financial Highlights
5. For the above-mentioned audit observations that have caused the issuance of a
qualified opinion, we recommended that Management shall:
i. Instruct the City Engineer to consistently furnish the City Accountant the report
of all completed projects which serves as basis in the recording of
adjustment/reclassification of the accounts. Further, direct the City Accountant
to draw the necessary journal entry for the recognition of the assets
accompanying the completion of the said projects; and
ii. Instruct the City Accountant to review the applicable accounting standard on
the recognition principle of the property, plant, and equipment. Moreover, we
recommended that the City Accountant disclose the missing PPE in the notes to
financial statements to provide adequate information.
iii. Accountability for the unaccounted property, plant, and equipment of the City
in the amount of ₱3,908,332.55 was not established pursuant to Section 101 of
Presidential Decree No. 1445 and Section 54 of Manual of NGAs for LGUs.
We recommended that the City General Services Officer send demand letters to
the concerned accountable officers for the production of the missing
government properties and/or report explaining why they were not found during
the physical count. Also, advise the accountable officer to request for relief from
accountability to COA for the lost items within the reglementary period.
iv. The Bislig City has no updated Revenue Tax Code which is not in accordance
with the Department of Interior and Local Government (DILG) and the
Department of Finance (DOF) Joint Memorandum Circular No. 2012-01 dated
January 13, 2012, thus, deprived the LGU to generate additional revenues for
the City’s economic development and fiscal sustainability.
vii. The non-submission of Local Disaster Risk Reduction and Management Officer
(LDRRMO) on the Monthly Report on Sources and Utilization of Disaster Risk
Reduction and Management Fund through the LDRRMC and Local
Development Council (LDC) to the COA Auditor of the LGU as required under
Section 5.1.5 of COA Circular 2012- 002 precluded the timely review and
verification of the said report.
viii. The continuous operation of the City’s existing residual containment area
(RCA) contravened Section 17 (h) paragraph 4 and Section 37 of RA No. 9003
which exposed high risk of public health and environmental hazards.
ix. Allocation for construction, repair and maintenance of school buildings and
other facilities of the SEF budget for CY 2017 with an aggregate amount of
₱1,287,622.50 or 13.74% of ₱9,370,284.77 total budget was only minimal
inconsistent to Item 4.1.2.1 of DEPED-DBM-DILG Joint Circular No. 1, series
of 2017 dated January 19, 2017, thus deprived the elementary and secondary
schools of better classrooms and other facilities that are conducive to learning.
xii. The City’s GAD Plan and Budget (GPB) and GAD Accomplishment Report
(GAD AR) were prepared but not submitted to the Provincial Planning
Development Office (PPDO) contrary to Section 4.0 (3) of PCW-DILG-DBM-
NEDA Joint Memorandum Circular No. 2016-01 dated January 12, 2016 which
may not assure that the PPAs are GAD responsive.
We recommended that Management through its GFPS first submit the GPB and
GAD AR to the PPDO to ensure alignment of priority PPAs of the province.
Then to the DILG Provincial Office for review and endorsement to be
incorporated in the LGU annual budget.
xiv. Significant delays on the acquisition of goods and services contravened the
provisions of RA 9184 which might affect the efficiency of the delivery of
public service and the operational performance of the city government.
xvi. Higher percentage of Value Added Tax (VAT) component provided on the
Approved Budget for the Contract (ABC) and Contract Cost of the four (4)
infrastructure projects of 12% contrary to the DPWH Department Order (D.O.)
No. 22 series of 2015 dated February 18, 2015 resulted in higher project cost.
xvii. Twenty percent development fund of the City was not fully utilized leaving a
total unexpended balance of ₱59,721,838.48, hence deprived the constituents of
the benefits that could be afforded in the implementation of priority programs,
projects and activities geared towards the desired socio-economic development
and environmental outcomes.
xviii. The non-utilization of the Special Trust Fund account and capital outlays for
DRRM in the current year budget totaling ₱42,736,610.61 and ₱18,611,451.95
respectively as of December 31, 2017 was due to the absence of comprehensive
LDRRM Plan and structured monitoring mechanism which affected the City’s
disaster preparedness, prevention, mitigation, and response capabilities.
7. For Calendar Year 2017, the City of Bislig was able to withhold the total amount
of ₱39,959,631,61 of taxes, of which ₱38,484,632.33 was remitted to the Bureau of
Internal Revenue leaving an unremitted balance of ₱1,474,999.28.
7.1 The balance of the collection represents the taxes withheld in the month of
December 2017 which was remitted in the month of January 2018.