SUMMARY OF THE
By 1890, the Municipality of Catarman was already a pueblo, with eighty five settlement within her jurisdiction. It strides the province and is bounded on the east by the Municipality of Mondragon, on the west by Bobon, on the south by Lope de Vega, and on the north by the Pacific Ocean. There are at present fifty five (55) barangays, eighteen of them are in the poblcaion within its relatively large municipal jurisdiction.
On June 19, 1965, the province of Northern Samar was created through Republic Act No. 4221 which provided for the division of Samar into three (3) provinces, the municipality of Catarman became its capital and implemented its vision of development as first class municipality.
Hereunder are the Municipality's mandated functions:
For calendar Year 1999, the Municipality of Catarman collected a total income of P43,771,513.75 in addition to the Continuing Appropriations of P1,279,770.27. It incurred total expenditures of P40,493,256.48 thus leaving an unexpended balance of P3,278,257.27 at the end of the year.
The municipality's assets, liabilities and residual equity for Calendar Year 1999 were P64,804,661.59, P5,856,835.08 and P58,947,826.51 respectively. It has an increase of 26.53%, 8.17% and 28.38% compared to 1998.
SCOPE OF AUDIT
The audit covered the operations of the Municipally of Catarman for CY 1999 and aimed to ascertain the propriety and validity of disbursements and receipts as well as the reliability of the accounts as presented in the financial statements and other financial data. The audit also aimed whether plans, programs and activities for the year were attained in an efficient, economical and effective manner. audit activities were focus mainly on Special Education Funds, Municipality's Operations and implementation of infrastructure projects.
Our audit procedures included analysis of accounts, interviews confirmation, inspection and post audit of vouchers included in the test audit months, under COA audit sampling scheme, to verify the legality validity and propriety of the disbursement and collection transactions.
During the year, out post audit covered the months from January to October 1999, which consequently caused the issuance of Certificates of Settlement and Balances (CSB).
The results of the Value for Money Audit shall be contained in a separate report.
STATE AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
The Auditor rendered a qualified opinion on the fairness of the presentation of the Financial Statements due to the 11M loan from the DBP for the construction of the Catarman Commercial Complex remained unrecorded in the books of the municipality. The management deferred to take up the proposed adjustment until the query at the Commission Proper on the legality, validity and enforceability of loan contract is settled.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS AND FAVORABLE OBSERVATIONS
For the exceptions cited above, the Auditor recommended for the conduct of physical inventory to facilitate the reconciliation of the Fixed Assets Account and the submission of monthly bank reconciliation statements with respect to the cash account. The following is a brief discussion of findings and recommendation:
Provide budget estimates for income and appropriation for Special Education Fund as management fiscal and administrative tools required under Republic Act No. 7160, or the Local Government Code of 1991.
Implement socio-economic projects immediately as provided in the guidelines prescribed in the use and reliance of funds to provide the constituents of the intended benefits as programmed.
Strictly comply with existing COA laws, rules and regulations pertaining to the time and mode of submission of contracts and other related documents to avoid delayed review and evaluation of projects by the unit or agency Auditor.
Install signboard or billboard at the project site to all government projects for implementation in compliance with COA Memorandum 87-492 as amended, the contents of attached format indicating the contractor's name, contractor's license number, and relevant license classification.
The audit findings and recommendations were discussed with the Auditee and their comments thereon were incorporated in the report where appropriate.
Insurance premiums amounting to P40,600.00 as damages from the car accident was finally collected from the Government Insurance System due to the concerted efforts of the municipality to collect what was due.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR'S AUDIT RECOMMENDATIONS
One of the four (4) recommendations contained in the 1998 Annual Audit report was not implemented due to non-preparation and submission of the Special Education Fund Budget for CY 1998 and 1999, and the other three (3) were fully implemented, via: the control and accounting of collections; review of all loans to determine their legality, validity, enforceability and correctness of form; and to direct cashier/disbursing and other officials entrusted with the task of paying the salaries, wages, allowances and other emoluments to pay directly to officials or employees only.