EXECUTIVE
SUMMARY OF THE
INTRODUCTION The municipality of Buluan, Maguindanao, was created by virtue of Executive Order 82 with a land area of fifty three thousand (53,000) hectares. It is a 4th class municipality composed of 23 barangays. Pursuant to MMA Act No. 25 otherwise known as the Local Government Code of the ARMM, the municipality, like other local government units, enjoy total independence in managing, deciding and planning its own administrative, fiscal and development affairs in conformity with national government's thrust for sustainable, social and economic growth. To accelerate the social, economic and infrastructure development of the municipality for the calendar year 1999, the following are the significant plans and program viz-a-viz accomplishments which have not been validated by the Office of the Provincial Auditor for failure of the management to inform the pursuant to existing COA rules and regulations. Major Accomplishments:
For calendar year 1999, the municipality collected P26,529,899.69 which is higher/lower then the targeted collections of P26,624,000.00. Out of this, it Appropriated an amount of P26,624,000.00 of which P26,515,602.11 was expended, thereby, balance of P108,397.89. The municipality's assets, liabilities and residual equity of December 31, 1999 were P3,805, 889.69, P1,092,288.78 and 1.32%, 2.09% and 1.15% over that of last year. On the other hand, its current ratio of 1:1:. SCOPE OF AUDIT A financial and compliance audit was conducted on the accounts and transactions of the Municipality of Buluan for the calendar year 1999. The audit consisted of review of operating Procedures, interview of concerned government officials and employees, reconciliation and analysis of accounts and such other procedures considered necessary. OPINION IN THE STATE AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS The Auditor rendered qualified opinion on the financial statements as to validity, existing and correctness on the recorded Fixed Assets account totalling P2,515,935.76 as of December 31, 1999, because the municipality failed to submit the physical inventory of its properties and equipment and the existing records do not allow application for alternative procedures. SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS For the exception cited above, the Auditor recommended the completion of physical inventory and submission of the report thereon to the Provincial Auditor as well as the proper disposition of any confirmed discrepancy. In addition, the following are other significant findings and corresponding recommendations.
Require the management and other responsible officials concerned to enforce the immediate settlement of the audit suspensions totalling P901,125.99 in accordance with Section 9.1 of the Revised Manual on CSB. In order to minimize the issuances of suspensions and disallowances of the Office of the Auditor, the Accountant/Internal Control Unit shall ensure that government rules and regulations on processing claims are strictly complied with. Conduct physical inventory of Fixed Assets and submit the report thereon to the Auditor in accordance with Section 490 of GAAM Volume I, in case deficiencies, make necessary adjustments in the Fixed Assets Account. Require the Municipal Treasurer to remit the collections of the municipality on time in order to avoid future temptations to misuse of government funds. STATUS OF IMPLEMETATION BY THE MUNICIPALITY'S PRIOR YEAR'S AUDIT RECOMMENDATIONS Out of the four (4) recommendations contained in the 1998 Annual Audit Report, only one (1) was partially implemented. |
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