SUMMARY OF THE
Valenzuela, the youngest city in Metro Manila, used to be a town in the Province of Bulacan carrying the name Polo. By virtue of Executive Order No. 46 signed by then President Diosdado Macapagal, this town was named Valenzuela in honor of the revolutionary leader, Dr. Pio Valenzuela. In the mid-seventies, the Municipality of Valenzuela was separated from Bulacan Province and became a part of the Metropolitan Manila. On February 14, 1998, former President Fidel V. Ramos signed Republic Act No. 8526 converting the Municipality of Valenzuela into a highly urbanized city to be known as the City of Valenzuela. Like all other local units, Valenzuela City aims to provide the basic services of food, shelter, education, health and nutrition, social and economic services to its constituents.
For the year 1999, the City realized income in the aggregate of
Appropriation for CY 1999 was pegged at
The financial condition of the City was generally good. The total assets posted
SCOPE OF AUDIT
A financial and compliance audit was conducted on the accounts and operations of the City of Valenzuela for CY 1999. The audit consisted of review of operating procedures; validation of the city’s programs and projects; interview of officials and employees; verification, reconciliation and analysis of accounts; and such other procedures considered necessary under the circumstances.
A Value for Money Audit was likewise conducted, the result of which is contained in a separate audit report.
STATE AUDITORS REPORT ON THE FINANCIAL STATEMENTS
The auditor rendered a qualified opinion on the fairness of presentation of the financial
statements because of the following reasons: 1) Undocumented recording of heavy equipments among the fixed assets accounts,
and the long-term liability of
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS
For the findings cited above, it is recommended that the Chief Executive make available the contract of loan to warrant assumption of the long term liability and the Property Office produce the documents evidencing receipt of the heavy equipments and shoptools. As to the inventory-supplies and materials account, the Property Office should be required to complete the Monthly Report of Supplies Issued for the City Accountant to make the necessary adjustments in the books of accounts.
The findings and recommendations were discussed with management and their comments on our audit observations are incorporated in this report, where appropriate.
Other significant findings and recommendations are the following:
Require the conduct of competitive public bidding in the award of government contracts. Adopt the aforementioned guidelines, rules and regulations governing LGU-funded infrastructure projects.
Cause the immediate transfer of the barangay council fund held in trust by the City to its 32 barangays.
Collate documents that warrant ownership over the vehicles and immediately register these with the Land Transportation Office.
Require the City Treasurer to allot ample time for the continuous inspection of business establishments and examination of taxpayers’ books of accounts.
Instruct the City Treasurer to conduct information dissemination to inform the public that the law authorizes the inspection of business establishments and the examination of taxpayers books of accounts.
Instruct the City Treasurer to find alternatives for the successful adherence to Section 171 of RA 7160.
Institute control measures to ensure that income from amusement taxes are correctly reported by amusement operators. Dispatch inspectors on a regular basis.
Limit acquisition of supplies through personal canvass to
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Four recommendations embodied in the previous year’s Annual Audit Report were implemented, while three were partially implemented.
The implementation of the previous year’s recommendation on the revenue audit of real property
tax yielded the collection of