EXECUTIVE SUMMARY OF THE
The National Capital Region (NCR) is one of the operating regional offices of the Department of the Interior and Local Government (DILG), established before reorganization of the Department of Local Government under Republic Act No. 6975. It embodies the policy of the Department, which is to promote peace and order, ensure public safety and further strengthen local government capability aimed towards effective delivery of basic services to the citizenry of its cities and municipalities. Likewise, it performs the powers and functions enumerated in Rule II, Section 5 of Republic Act 6975 and Section 17 of Executive Order No. 262, to implement the local government policies, programs and projects of the Department.
The agency achieved 96.84% of its targets in CY 2001, in terms of, consultancy and technical assistance for training and capability building on revenue and capability building for effective and efficient delivery of services for local government units delivery of services; monitoring of community based sports project, foreign assisted project, accountability and transparency in local government; other services in support of the regional offices vision to further improve organization effectiveness and efficiency and reporting on results of performance monitoring and assessment. Likewise, it is the lead agency in the implementation of President Gloria Macapagal Arroyo’s KALINGA SA KABATAAN, an emergency employment project for the out-of-school/out-of-work male youth in the 35 depressed areas of Metro Manila.
For calendar year 2001, the agency received total allotments amounting to P52,921,729.34 consisting of P42,184,000 from DILG - NCR Funds, P2,000,000 releases from Other Funds, P8,706,900 Sub-Allotment releases from DILG - Central Office per Re-enacted General Appropriation Act CY 2000, P30,829.34 from DILG - NCR Funds 2000 Continuing Appropriation Republic Act 8760.
The agency incurred a total obligation of P50,852,775, against the total allotment received amounting to P52,921,729.34 thereby leaving an unexpended balance of P2,068,954.34.
SCOPE OF AUDIT
The audit covered the accounts and operations of DILG - NCR for calendar year 2001. The objectives of the audit were to ascertain whether the disbursements made are within the accepted standards; the reliability of its financial position and operations with adequacy of accounting books and subsidiary records; and whether or not resources were effectively utilized towards the accomplishment of plans and targets.
The audit also focused on the value for money of projects implemented by the regional offices, funded under the regular appropriation of the agency and supported by sub-allotment releases from DILG-Central Office. The examination was confined to selective tests of accounts and records. The evaluation was made on the quantitative results of the activities undertaken under the various projects and to some extent on available data the effectiveness of the project.
STATE AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The auditor rendered a qualified opinion on the fairness of presentation of financial statements (Fund 101) of the agency because the book balance of Cash Other Bank, Current Accounts 8-70-300 – LGA and 8-70-370 Cubao amounting to P1,130,049 and P177,723.03, respectively, have not been reconciled with the bank balance as of December 31, 2001, casting doubt on the correctness and validity of the account.
SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS
For the exception cited above, the Auditor requires the Agency Financial Officials to reconcile the Cash Other Bank Account to establish its actual balance. Furthermore, the trust receipts and cash other bank balances no longer identified for any specific purpose should be transferred to the Bureau of Treasury in compliance with COA-DBM-DF Joint Circular No. 1-97.
The following are the other significant findings and recommendations:
Maintain always the optimum performance without sacrificing the quality of work and immediate delivery of government services for the better life of the Filipino people.
Maintain the timely submission of disbursement vouchers, other related documents and reports to COA to meet the time frame prescribed.
Stop immediately the payment of the snacks, lunch and meals out of the training funds which should be charged properly against Extraordinary and Miscellaneous Expenses (3-18-000).
Stop utilizing/borrowing cash from one priority project in implementing other priority projects.
Stop utilizing "Other Services" 3-29-000 for the payment of allowances and honoraria to regular employees of the agency to avoid exhausting funds for operations that could limit the implementation of the project and its effectiveness.
The auditor had discussed the findings and recommendations in a management letter to the auditee and the latter’s comments were incorporated in the report, where appropriate.
STATUS OF IMPLEMENTATION BY THE AUDITEE OF PRIOR YEAR’S AUDIT RECOMMENDATIONS
Out of the five recommendations contained in the 2000 Annual Audit Report, two were fully implemented and the remaining three were not acted upon which we reiterate for their compliance. Likewise, we reiterated one CY 1999 recommendation which has not been complied with.