PART III

STATUS OF IMPLEMENTATION OF PRIOR YEAR’S UNIMPLEMENTED AUDIT

RECOMMENDATIONS
 STATUS OF IMPLEMENTATION OF PRIOR YEAR’S
UNIMPLEMENTED AUDIT RECOMMENDATIONS

Review and evaluation of the actions taken by management on CY 2013 – 2020 audit
recommendations showed that of the 67 audit recommendations, 28 were implemented and 39 were not
fully implemented as of year-end. The details are discussed hereunder.
Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
F#1 1. Some Property, We recommended that
2020- Plant and Equipment the Accounting Unit
2019 (PPE) accounts with should:
BAR carrying values totaling
₱53,080,409.54 were a.recognize impairment For BOD Not Reiterated in
overstated due to: a) losses; resolution Implement F#8 2021-
non-provision of ed 2022 BAR
impairment losses; b) b.prepare the necessary Prepared an
recognition of semi- journal entry/ies to adjusting Fully
expendable items; and c) derecognize the semi- entry under Implement
inclusion of expendable items GJ ed
unserviceable properties which were issued to No.2021-07-
contrary to Philippine end users, listed in 005B dated
Accounting Standards Table 2, taking into 7-28-2021.
(PAS) 1 and 36, and consideration the
Commission on Audit accumulated
(COA) Circular No. depreciation that were
2016-006, hence allocated thereon; and
affecting the fair
presentation of the c.prepare the Inventory IIRUP has Not Reiterated in
financial statements. and Inspection Report been Implement F#8 2021-
of Unserviceable prepared ed 2022 BAR
Property (IIRUP) of and
the unserviceable submitted to
PPEs, listed in Table 3, COA
and undertake the
process for the disposal
and derecognition
thereof.
F#2 2. The accuracy of We recommended that
2020- the outstanding the Accounting Unit
2019 obligation with the Local should:
BAR Water Utilities
Administration (LWUA) a. conduct a To contact Not Need to
recognized to the Loans periodic reconciliation LWUA implemente discuss with
Payable - Domestic of loan records and d LWUA Loan
account totaling make necessary Made a personnel
₱32,151,449.56 was not adjustments, if any: written
ascertained due to and request of
absence of loan records the SOA
and non-reconciliation b. regularly and waiting
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
thereof contrary to PAS request for the for reply. Fully
1 and Section 111 of monthly SOA from Implement
Presidential Decree (PD) LWUA. LWUA sent ed
No. 1445, thus rendering SOA on a
the account balance quarterly
unreliable. basis.
F#3 3. The balance of We recommended that
2020- the Construction in the Accounting Unit
2019 Progress (CIP)– should:
BAR Infrastructure Assets
account as at December a. prepare the Prepared an Fully
31, 2020 was overstated following journal entry adjusting Implement
by ₱8,922,326.27 due to to reclassify the entry under ed
non-recognition of GJ
completed projects to the No.2021-07-
appropriate PPE 005D dtd 7-
accounts contrary to 30-2021
completed projects:
Section 111 of PD No.
1445, PAS 1 and COA
b. trace and
Circular No. 2020-002, Not Reiterated in
retrieve records on the Partial Implement F#11 2021-
thus affecting the
Accumulated Various
fairness of presentation retrieval ed 2022 BAR
Small Projects records and
of the financial
amounting to
statements. adjustment
₱1,150,524.15 and has already
accordingly reclassify made with
the same to the GJ
appropriate asset No.2021-10-
account/s. 005C due to
erroneous
posting of
account.
F#4 4. The accuracy of We recommended that
2020- the Loans and the: Still unable
2019 Receivable accounts to prepare
BAR reported at net realizable a. Accounting Unit and maintain
value totaling should: the SLs for
₱3,646,078.97 was not Accounts
ascertained due to: a) i. prepare the SLs for Already Not Receivable
partial/non-provision of the Accounts maintaining Implement and Loans
impairment losses; b) Receivable and Loans a customer’s ed Receivable-
absence of aging Receivables-Other ledger and Others
schedule for the Loans accounts; and loan ledger.
Receivable –Others
account; c) absence of ii. recognize For BOD Not Still unable
subsidiary ledgers (SLs); impairment losses for resolution Implement to conduct
and d) non- the Loans and ed periodic
reconciliation of water Receivable accounts; reconciliation
concessionaires’ records of water
contrary to Section 111 iii. the accounting and concessionair
of PD No. 1445 and PAS the billing units should: es records;
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
36 and 39, thus doubtful. and
b. conduct periodic Lack of Not
reconciliation of water manpower. Implement
concessionaires’ ed
records; and To conduct
reconciliatio
c. accurately account n in due Not Account for
for the difference time Implement the difference
between the balances of ed of the
the Accounts Accounting balances of
Receivable account and Billing the Accounts
presented in the unit tried to Receivable
financial statements reconcile against aging
and the aging schedule but could schedule.
as of December 31, not
2019 and December 31, determine
2020 amounting to the
₱9,845.74 and difference.
₱24,371.37, Other
respectively and effect Unearned
the corrections thereon, Revenue
if any. acct for
advances
made has
been created
as part of
the effort to
account the
difference.

F#5 5. Supplies/ We recommended that Prepared an Fully

2020- materials for water the Accounting Unit adjusting Implement
2019 service connections should prepare the entry under ed
BAR costing ₱2,693,169.84 following journal entry GJ
were recognized to Other to reclassify the No.2021-07-
Supplies and Materials inventory items for 005A dated
Inventory account water service 7-28-2021
instead of Supplies and connections:
Materials for Water
Systems Operations due
to non-familiarity with
the Updated Revised
Chart of Accounts for
Government
Corporations contrary to
PAS 1 and COA Circular
2020-002, thereby
affecting the fair
presentation of the
financial statements.
F#6 6. The Leave We recommended that
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
2020- Benefits Payable account the Accounting Unit
2019 was understated by should:
BAR ₱652,984.53 as at
December 31, 2020 due a. compute the money Formula Fully
to non-familiarity with value of accumulated prescribed Implement
existing rules and leave credits by using has been ed
regulations contrary to the formula prescribed applied
the PAS 19, thus under DBM Budget
affecting the fair Circular No. 2016-2;
presentation of the
financial statements. b. prepare the following Prepared an Fully
adjusting journal entry adjusting Implement
to recognize the money entry under ed
value of accumulated GJ
leave credits of No.2021-07-
employees as at 005E dated
December 31, 2020: 7-30-2021

F#7 7. The financial We recommended that Prepared an Fully

2020- assistance from the the Accounting Unit adjusting Implement
2019 Local Government Unit should prepare journal entry under ed
BAR (LGU) of Naval, Biliran, entry to reclassify the GJ
was recognized to Other financial assistance to No.2021-08-
Unearned the Deferred Revenue 005 dated 8-
Revenue/Income due to from Grants and 16-2021
non-familiarity with the Donations account, as
Updated Revised Chart follows:
of Accounts for
Government
Corporations
inconsistent with PAS 1
and COA Circular No.
2020-002 which
overstated the
aforementioned account
and understated the
Deferred Revenue from
Grants and Donations
account.
F#8 8. The Intangible We recommended that
2020- Assets account balance the Accounting Unit
2019 totaling ₱975,850.00 was should:
BAR unreliable due to: a)
difference between the a. provide for For BOD Not Still unable
costs stated in the MOA amortizations and resolution implemente to provide
and the balances impairment losses on d impairment
presented in the financial the intangible assets; losses on
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
statements; and b) non- intangible
provision for assets.
amortization and b. secure
impairment losses documents/data to Data already Not The
inconsistent with PAS 1, account for the secured but implemente difference
36 and 38, thereby difference between the still in the d still not
affecting the fair costs stated in the process of accounted.
presentation of the MOA and the balances tracing back
financial statements. presented in the entries
financial statements, made.
and make necessary Need ample
adjustments, if any; and time to trace
back
c. provide full original
disclosures of historical entries made Fully
data/details of the from the Implement
Intangible Assets in the past years. ed
Notes to Financial
Statements. Disclosures
already
reflected on
the Notes to
FS
F#9 9. Customers’ We recommended that Prepared an Fully
2020- Deposits Payable the Accounting Unit adjusting Implement
2019 account was understated should prepare the entry under ed
BAR by ₱246,849.00 due to following journal entry GJ
recognition of water to reclassify No.2021-09-
concessionaires’ concessionaires’ 005B dated
deposits to the Other deposits for water 9-30-2021
Deferred Credits account service connections to
contrary to PAS 1 and Customers’ Deposits
COA Circular No. 2020- Payable:
002, thereby affecting
the fair presentation of
the financial statements.
F#10 10. The Semi- We recommended that Prepared an Fully
2020- Expendable Inventory the Accounting Unit adjusting Implement
2019 accounts were overstated should prepare the entry under ed
BAR by ₱163,320.00 due to following journal entry GJ
non-recognition of items to derecognize the No.2021-07-
already issued to end- semi-expendable items 005B dated
users contrary to Section alrea0dy issued to end- 7-28-2021
111 of PD No. 1445 and users:
PAS No. 1, thus
affecting the fair
presentation of the
financial statements.

F#11 11. The validity of We recommended that Could not Not Reiterated in
2020- the balance of Other the Accounting Unit locate implemente F#7 2021-
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
2019 Assets account of should locate/trace records d 2022 BAR
BAR ₱115,880.00 as at records/ supporting since the
December 31, 2020 was documents to establish transactions
not ascertained due to the validity of the Other were made
absence of Assets account, and from 4
records/supporting make adjustments decades ago
documents contrary to thereon, if necessary. since the
Section 111 of PD No. start of the
1445, PAS 1 and COA district’s
Circular No. 2020-02, operation
thus doubtful. and records
were already
destroyed by
termites
F#12 12. The unexpired We recommended that Prepared an Fully
2020- portion of the property the Accounting Unit adjusting Implement
2019 insurance totaling should prepare the entry under ed
BAR ₱42,915.96 was not following journal entry GJ
recognized due to to recognize the No.2021-07-
habitual practice of unexpired portion of 005C dtd 7-
recording insurance the insurance 30-
premium payments as premiums: 2021.Alread
outright expense y submitted
contrary to PAS 1 and to COA
COA Circular No. 2020-
002, thereby
understating the Prepaid
Insurance and Retained
Earnings/(Deficit)
accounts.
F#13 13. The validity of We recommended that Prepared an Fully
2020- liabilities for customers’ the Accounting Unit adjusting Implement
2019 deposits totaling should derecognize entry under ed
BAR ₱42,172.89 was doubtful customers’ deposits GJ
due to lack of without valid claimants. No.2021-09-
monitoring inconsistent 005F dtd 9-
with Section 59 of PD 30-2021.
No. 1445 and PAS 1, For COA
thereby affecting the submission
fairness of presentation
of the financial
statements.
F#14 14. The Cash in We recommended that Submitted to
2020- Bank – Local Currency, COA the
2019 Current Account was bank
BAR understated by a net statement on
amount of ₱30,824.50 the reflected
due to non-recognition cash deposit
of long outstanding letter dated
reconciling items 11-18-2021. Fully
contrary to PAS 1, thus Prepared Implement
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
affecting the fair a. prepare the adjusting ed
presentation of the following journal journal
financial statement. entries to recognize the entries
reconciling items: under GJ
No.2021-09-
005D dated
9-30-2021
and GJ
No.2021-09-
005E dated
9-30-2021

Check
issued was
replaced
with cash
and
deposited
back as cash
deposit

Had already
written to Not
LB-Naval Implement Reiterated in
b. immediately request requesting ed F#14 2021-
from the bank a copy of for a copy of 2022 BAR
the various credit the CM and
memoranda with the waiting for
detailed list of the response
concessionaires who
paid through the Collections
facility. is
recognized
as payment
to water
billing when
CM is
presented in
the district
and with
correspondi
ng Official
Receipt is
issued.
LB-Naval
could not
give other
credit
memoranda
since the
transactions
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
were from
Tacloban
branch.
F#15 15. Donated parcels We recommended that To hire
2020- of land in favor of NWD Management should: appraiser
2019 were not recognized due Delayed in
BAR to lack of basis in the a. seek the services of coordination Not Still unable
valuation of property professional appraisers with the Implement to hire
contrary to Section 63 of or government agencies donors. ed appraisers
PD No. 1445 and PAS 1, to ascertain the due to
thereby affecting the fair valuation of the parcels Difficulty difficulty in
presentation of the of land; obtaining obtaining
financial statements. details since details from
b. closely coordinate cooperation previous
with the donors to is needed Not management
facilitate the from the Implement and with the
registration/land titling previous ed donors
of the donated parcels management
of land; and who has
thorough
c. provide full knowledge Not
disclosure in the Notes of the Implement
to Financial Statements donation. ed
the details of these
donated parcels of land. Will set a
specific time
to
coordinate
with.

F#15 16. Seven parcels of We recommended that Delayed in Not Disclosed in

2020- land reported under the Management should securing implemente the Notes to
2019 Land account with costs secure certificates of certificates d FS.
BAR aggregating title in favor of NWD because the
₱3,796,523.80 were not for the seven parcels of district is
covered with certificates land and promptly pay still on the
of title in favor of NWD the property taxes due plan of
and the property taxes thereon. hiring a
thereon remained unpaid person to
due to the absence of take charge
transfer documents from of the
the original owners overall
contrary to Section 39.2 process.
of PD No. 1445, which
may deprive the NWD To hire
from the use of the person in
property charge of
the
transactions.
F#17 17. The Bids and We recommended that, To Not Still unable
2020- Awards Committee henceforth, the BAC implement implemente to prepare
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
2019 (BAC) of NWD did not should prepare the for CY 2022 d and submit
BAR prepare and submit the PMR for the two the
Procurement Monitoring semesters of each year, Procurement
Report (PMR) to the to be approved by the Monitoring
Government HoPE, who shall Report to
Procurement Policy submit the same to the GPPB.
Board (GPPB) the four GPPB in printed and
consecutive semesters in electronic format
CYs 2019 and 2020 due within three (3) months
to lack of awareness of after the end of each
existing rules and semester in accordance
regulations, contrary to with GPPB Circular
Section 12.2 of the 2016 No. 02-2020. The
Revised Implementing PMR should be posted
Rules and Regulations in accordance with
(IRR) of Republic Act Executive Order (EO)
(RA) No. 9184, which No. 662, s. 2007, as
precluded the GPBB to amended, pursuant to
monitor the procurement Section 12.2 of the
activities of NWD. 2016 Revised IRR of
RA No. 9184.
F#18 18. The Annual We recommended that To start the
2020- Procurement Plan (APP) Management should: submission
2019 for Fiscal Years (FYs) according to
BAR 2019 and 2020 were a. direct the BAC the Not Still unable
prepared but were not Secretariat to submit prescribed implemente to submit
submitted to GPPB, the NWD’s duly deadline by d APP to
contrary to GPPB approved APP to the the next CY GPPB; and
Circular 02-2020. GPPB on or before the 2023.
deadline prescribed by
the GPPB and related the same was
issuances; and not submitted
b. furnish the Only the Not to COA
Auditor a copy of the copy of Implement
duly approved APP and approved ed
proof of submission of APP has
the APP to the GPPB. been
emailed to
COA
F#19 19. The NWD While we commended NWD Fully
2020- exceeded the Non- the NWD management already Implement
2019 Revenue Water (NRW) for its efforts in strengthened ed
BAR rate by about 1% in CY achieving NRW near its measures
2020 from the 20% the tolerable limit, we in reducing
acceptable limit recommended to exert NRW. 2021
prescribed in Local more efforts and MDS from
Water Utilities enhance its measures January to
Administration (LWUA) and strategies already September
Memorandum Circular in place to further shows a
(MC) No. 004.10 due to reduce NRW in order decreasing
inadequate measures in to generate more trend of
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
reducing water losses revenue to finance its NRW from
resulting in unrealized operations and projects 20.7% to
water sales amounting to for the improvement of 19.3%
₱5,352,026.40. the water system.
F#20 20. Cash advances We recommended that Office Fully
2020- for special purposes and Management should Memorandu Implement
2019 payroll totaling designate in writing the m was ed
BAR ₱94,700.00 and accountable officers to issued to the
₱2,160,647.65, handle the disbursing accountable
respectively, were functions. officer and a
granted to two copy has
accountable officers who been
were not duly designated emailed to
to perform cash COA,
disbursing functions, hardcopy
there being no other already
bonded employees submitted
contrary to Section 123 letter dated
of PD No. 1445 and 11/08/2021.
COA Circular No. 97-
002 which weakened the
internal control on cash.
F#21 21. Two We recommended that Separate Fully
2020- accountable officers did the accountable officers CDR is Implement
2019 not prepare Cash should individually already ed
BAR Disbursement Record keep independent cash maintained
(CDR) for cash advances records for cash
in as much as these were advances/liquidations.
merely incorporated in
the Acting Cashier’s
reports contrary to
Section 111 of PD No.
1445 which resulted in
their inability to know
the balances of their cash
accountabilities at a
given period/ date.
F#22 22. No itemized We recommended that Already Fully
2020- invoice and receipt of Management should submitted to Implement
2019 accountabilities was require the outgoing COA the ed
BAR rendered by the outgoing accountable officers to prepared
accountable officer due prepare the itemized reports of
to habitual practice invoice and receipt of accountabili
contrary to Section 77 of accountability. ty letter
PD No. 1445 resulting in dated
uncertainty of 11/04/2021
accountabilities which and already
were due for transfer. emailed a
snapshot to
COA.
F#23 23. The NWD was We recommended that To stick Not Reiterated in
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
2020- unable to fully address NWD should with our implemente F#12 2021-
2019 gender-related issues in institutionalize GFPS, usual annual d 2022 BAR
BAR CYs 2019 and 2020 due attribute at least 5% of budget.
to non- its annual corporate
institutionalization of operating budget for 5% is too
Gender and GAD programs, high since
Development (GAD) activities and projects the actual
programs contrary to to be formulated in its realization
Joint Circular (JC) No. annual GAD Plan and of the
2012-01 of the Budget, and cause the annual
Philippine Commission submission of GPB and sales/incom
on Women (PCW), GAD ARs to LWUA in e does not
National Economic the manner prescribed meet the
Development Authority under PCW-NEDA- projected
(NEDA), and DBM, DBM JC No. 2012-01 annual
Executive Order (E.O.) and PCW MC No. sales/incom
No. 273, and PCW 2015-03 as extended e basing
Memorandum Circular under PCW MC No. from the
(MC) Nos. 2015-03 and 2016-06 to make NWD past years’
2016-06. compliant with the trend
mandate of E.O. No.
273.
F#1 24. The PPE We recommended that
2018 accounts with an Management: Delayed in
AAR; aggregate carrying value implementin
F#1 2017 of ₱66,846,351.75 or a. require the g due to lack
AAR 83% of the total assets Accounting Unit to: of
cannot be reliably knowledge.
ascertained due to: (1)
non-maintenance of PPE maintain PPE Ledger To continue Not Reiterated in
Ledger Cards and Card and CIP Ledger filling up implemente finding no.1
Construction in Progress Card for each of the the d of the current
(CIP) Ledger by the PPE accounts as Ledger card report.
Accounting Section; (2) prescribed under but need to
inadequately filled-up existing accounting inquire for
Property Cards and regulations in order to more
partially accomplished determine the detailed information
Report of Physical Count composition, easily regarding
of PPE (RPCPPE) by the identify any erroneous the data
Property Custodian; (3) postings and actual needed
overstatement of balance of
Buildings account by accountability (quantity
₱491,397.50; and (4) and amount) of each
inclusion of 267 property at a particular
unserviceable properties, period;
the corresponding balance
of which was not fully exert utmost efforts to Not
reported and 21 fully determine the details of The material Implement
depreciated properties the CIP – various requisition ed
totaling ₱835,907.70, account of slips
both of which were not ₱1,150,524.15 in order wherein the
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
disclosed in the Notes to that necessary details of
Financial Statements adjustments can be transactions
contrary to paragraphs 74 made in the books; were
and 79 of PAS No. 16. reflected
destroyed by
typhoon
prepare adjusting
journal entry and Fully
submit a copy of the Adjustment Implement
Journal Entry Voucher had been ed
to the Audit Team made in the
relative to the noted amount of
misstatement affecting P33,000
the under
Buildings, GJ
Construction No.2021-10-
in
Progress – Buildings 005C and
and Other Structures GJ No.
and Other Land2019-04-
Improvements 005D dated
accounts, to wit: 4-30-2019
due to
CIP – Buildings and erroneous
Other Structures posting of
₱40,000.00 account.
Other Land
Improvements
₱451,397.50

Buildings
₱491,397.50

provide additional
disclosure in Note 9.1 Fully
for the Land and Land Implement
Improvements account Disclosure ed
declaring the restriction has been
or limitation on the provided
land titles since
processing thereof is
still on-going; and

provide additional
disclosure in the Notes Fully
to report the Implement
unserviceable/idle Disclosure ed
properties as well as has been
fully depreciated assets provided
which were noted in the
audit in compliance
with the disclosure
requirements provided
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
under PAS 16.

b.require the Property

Custodian to maintain Not
Property Cards for all Implement
the PPE accounts as On-going ed
provided in existing filling up
Accounting regulations property
to easily monitor or cards for all
keep track of the accounts of
composition thereof, PPE.
determine the actual
and accurate balance of To complete
accountability for each maintaining
item of PPE and in case property
there are discrepancies, cards all
reconciliation with the PPE
accounting records can accounts.
be easily carried out;

c.require the Inventory

Committee to prepare Fully
and duly accomplish Implement
the RPCPPE; and RPCPPE ed
has been
d. require the prepared
Committee on Disposal
to make an appropriate Not No disposal
action on the implemente committee
unserviceable To create d has been
properties which are no disposal created yet.
longer used by the committee
Water District and to take up
observed the pertinent appropriate
procedures for the action
disposal of government regarding
properties provided in disposal on
the Manual on Disposal unserviceabl
of Government e properties
Property issued by the
Department of Budget
and Management.
F#2 25. Due to non- We recommended that
2018 preparation of the bank Management require the
AAR reconciliation statement Accountant to:
(BRS) for December
2018, stale checks a.immediately prepare Submitted Fully
totaling ₱6,169.20 and the necessary adjusting the entries Implement
interest income of entries for the stale to COA ed
₱121.50 were not checks totaling letter dtd
adjusted in the books at ₱6,169.20 and 6/03/2019
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
year-end, while details of unrecorded interest
per GJ
the noted variance income of ₱121.50 in No.2019-04-
between the balance per order to reflect the 005 dtd
book and adjusted bank correct balance of the 4/30/2019
balance of the NWD’s affected Cash in Bank and GJ
LBP current account as of accounts in the
No.2019-01-
December 31, 2018 of financial statements; 009 dtd
₱143,673.09 cannot be 1/31/2019
determined, thus accuracy b.coordinate and Submitted Fully
and reliability of the immediately request already the Implement
reported balance of Cash from the bank a copy of bank ed
in Bank – Local Currency the statements of the reconciliatio
Current Account (LCCA) two bank accounts at n statement
and Cash in Bank – Local the end of every month
Currency, Savings and consequently
Account (LCSA) of prepare BRS to
₱699,924.78 and immediately determine
₱585,942.54, respectively the details of the
as of December 31, 2018 reconciling items that
is uncertain. require adjustment in
the books especially the
unreconciled difference
of ₱143,673.09 for the
LBP current account;
and

c.submit the BRS for Already Fully

the month of December submitted Implement
2018 for each account the BRS for ed
and ensure that bank December
reconciliation 31, 2018
statements for future
periods will be
prepared and submitted
regularly within the
prescribed period
pursuant to Section 111
of PD No. 1445.
F#3 26. The Accounts We recommended that
2018 Receivable of Management:
AAR; ₱1,998,900.21 as of
F#4 December 31, 2018 was a. require the Not able to Not Disclosed in
2017 not fairly presented in the Accounting Section to trace the implemente the Notes to
AAR; financial statements due determine the details of discrepancy d FS.
F#2 to discrepancy noted of the discrepancy noted
2016 ₱26,390.63 between the of ₱26,390.63 between
AAR balance per Schedule of the balance of Accounts
Aging and per General Receivables appearing
Ledger and non-provision per Schedule of Aging
of allowance for and per books and
impairment for long consequently, prepare
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
outstanding accounts the necessary adjusting
totaling ₱677,452.19. entries thereof to
properly reflect the
correct balance of the
said account in the
books; and

b. conduct further Provision Fully

review on the for Implement
collectability of the impairment ed
balances from inactive already
and abandoned applied per
customers in order that approved
sufficient level of BOD
allowance for Resolution.
impairment can be
provided and
consequently report the
Accounts Receivable in
the financial statements
at net realizable value
in compliance with the
requirements of PAS
29.
F#5 27. Unliquidated We recommended that
2018 cash advances as at year- Management:
AAR end amounted to
₱412,830.49 of which a.require the officials Difficulty to Not
89% thereof or and employees to demand implemente Reiterated in
₱366,860.00 has immediately settle their payment due d F#6
remained outstanding cash advances in full death of the 2021-2022
ranging from six to 11 within the prescribed BODS and BAR
years due to death and period of liquidation one official
expiration of term of pursuant to COA not
office and non- Circular No. 97-002 connected
compliance with COA dated February 10, with the
Circular No. 97-002. 1997 to avoid district
accumulation of anymore
unliquidated cash
advances; and

b.send demand letter to Demand Not

the former BOD/heirs letter had implemente
of the deceased BOD been sent d
with outstanding cash but no reply
advance to enforce from them
immediate liquidation
thereof. Emailed
COA the
copy of the
demand
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
letter.
F#8 28. Out of the We recommended that To submit to Not Delayed in
2018 existing insurable assets Management insure all GSIS the implemente the
AAR owned by the NWD its insurable assets in form for d submission
aggregating compliance with RA computation of the
₱65,262,245.18, only No. 656 as amended by of insurance Consolidated
₱5,870,234.00 or a mere PD No. 245 and submit Property
9% of the aggregate total a duly accomplished Insurance
were insured/covered and consolidated form to GSIS
with the General Property Insurance
Insurance Fund (GIF) of Form to the GSIS and Reiterated in
the Government Service to the Audit Team not F#10
Insurance System (GSIS) later than April 30 of 2021-2022
as required under RA No. each year, for all BAR
656 and COA Circular properties which are
No. 2018-002 dated May subject for insurance
31, 2018, thus depriving and observe such other
government of reliable procedures prescribed
protection against damage under COA Circular
or loss of assets due to No. 2018-002 dated
fire, earthquake, storm or May 31, 2018 so that
other fortuitous events of NWD is assured of
its remaining properties. indemnification in cases
where those properties
will be damaged or lost
due to fire, earthquake
or other unforeseen
events.
F#10 29. The NWD did We recommended that Comprehens Fully .
2018 not prepare a DRRM Plan Management formulate, ive plan has Implement
AAR and appropriate funds promote and implement been ed
therefor since CY 2012 a comprehensive prepared
despite the Commission’s DRRM Plan that aims and to
recommendation contrary to strengthen the implement
to RA No. 10121, thus, capacity of the Water for CY2022
casting doubt on its District to build its
capacity to respond and disaster resilience and
recover from natural or institutionalize
man-made calamities. arrangements and
measures for reducing
disaster risks including
projected climate risks
and enhancing disaster
preparedness and
response capabilities at
all levels.
F#11 30. Due to non- We recommended that
2018 maintenance of Management:
AAR Subsidiary Ledgers for
each nature of GSIS a. ssustain its GSIS Not Reiterated in
deductions, details of adherence with the RA mandatory Implement F#4
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
underpayment totaling No. 8291 and its IRR obligations ed 2021-2022
₱3,064.79 relating to particularly on the are always BAR
employee share of GSIS withholding of GSIS remitted on
premiums and deductions and the time
overpayment of GSIS timely remittance
loans totaling ₱10,862.99 thereof to the GSIS; Still unable
were not immediately Not to maintain
detected, thus may result b. rrequire the implemente SLs for each
to the incurrence of Accounting Section to Need to d nature of
penalties and charges by maintain Subsidiary establish GSIS
the Water District, in the Ledgers for each nature beginning deductions;
case of under remittance. of GSIS deductions to balances of and
properly determine each nature
their balances for a of GSIS
particular period to deductions.
facilitate easier To start
reconciliation for any maintaining
variances noted; and SL
Not
c. require the Implement
Accounting Section to Submitted ed Still unable
determine the details of the to determine
the underpayment of supporting the causes of
GSIS premiums documents the
totaling ₱3,064.79 and for details of understateme
overpayment of GSIS discrepancy nt and
loans totaling letter dated overstatemen
₱10,862.99 to avoid 6-03-2019. t of GSIS
incurrence of penalties contributions.
and charges, in the case
of underpayment and
appropriate action can
be done with regard to
the noted variances.

F#13 31. The existence We recommended that Submitted Not Delay in

2017 and valuation of the Management instruct or the the implemente creation of
AAR Inventories account create an Inventory report on d Inventory
amounting to Committee in order to Physical Committee
₱3,155,241.90 or 4.77% of conduct physical count Count of
the total assets could not on inventories and Inventories.
be ascertained due to prepare the required To create
failure of Naval Water report on the Physical committee
District to conduct Count of Inventories. this CY2022
physical count of its
Inventories and to prepare
the required Report on the
Physical Count of
Inventories contrary to
Sections 111 and 58 of PD
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
No. 1445.
F#8 32. Disallowed We recommended that Some of the Not Issued
2017 claims with duly received Management focus on persons implemente NSSDCs in
AAR; Notices of Finality of settlement of duly liable d CY 2022 for
F#8 Decisions (NFDs) and received Notice of already settlement of
2017 COA Order of Executions Finality of Decisions started disallowance
AAR; (COEs) totaling (NFDs) and COA paying the s.
F#5 P351,959.00 remained Order of Executions disallowanc
2014 unsettled contrary to (COEs) by personnel es. To exert
pertinent provisions of determined as liable. more effort
COA Circular 2009-006 for the
dated September 15, settlement
2009. of the
disallowanc
es
F#16 33. Naval Water We recommended to Waiting for Not Still without
2017 District failed to prepare finalize the completion update from Implement reviewed
AAR and implement the Water of its Water Safety Plan LWUA for ed WSP from
Safety Plan (WSP) as (WSP) using the 11- the approval LWUA.
required by the step process provided of the
Department of Health under DOH submitted
Administrative Order No. Administrative Order WSP. To
2014-0027 dated No. 2014-027 and make query
September 4, 2014 and submit the WSP for from
Local Water Utilities review and LWUA
Administration recommending
Memorandum Circular approval of LWUA and
No. 010-14 dated approval of DOH.
December 1, 2014 due to Furthermore, upon
insufficient information securing an approval of
and technical knowledge the Water District’s
of the District’s personnel WSP, Management
in WSP preparation, thus, should implement the
guidelines in developing plan, monitor and
thereto was not made. evaluate its
implementation and
develop alternative
strategies to improve
the implementation of
the plan.
F#19 34. Naval Water We recommended to Regular and Fully
2016 District (NWD) could management to casual Implement
AAR have dispensed the consider the employees’ ed
salaries and wages of its use/availment of salaries paid
officials and employees the payroll service through
thru the Land Bank of the facility of the banks.
Philippines (LBP) Land Bank of the
Automated Teller Philippines thru
Machine (ATM) payroll automated teller
account, in accordance machines (ATMs)
with Section 123 and 124 by making proper
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
of PD 1445. representation
with the bank.
F#8 35. The District does We recommended Prepared Fully
2015 not prepare the Budget management to use BUR Implement
AAR; Utilization Request regularly the BUR ed
F#8 (BUR) and neither using the agency's
2013 maintains the Registry of approved budget as
AAR Budget and Utilization guide. On the
(RBU) as well as Daily other hand, the DCPR
Cash Position Report shall be
(DCPR) resulting in mandated for the
absence of documents Cashier's basis in
and records to maintain the determining
and control the budgetary available funds for
accounts. any requested
payments. Both
documents shall be
maintained as
part of the agency's
records to prevent
incurrence of expenses
beyond the
level of available funds.
To facilitate
the undertaking only of
payments
that are valid and
appropriate.
Furthermore, in all
instances only
prescribed forms shall
be utilized to
preclude omission of
the error in the
reporting of financial
transactions.
F#7 36. No documents Cause the submission Could not Not Still unable
2014 were produced for COA to COA of all obtain the implemente to submit the
AAR relating to the the indispensable documents d required
procurement of the documents evidencing needed due documents.
infrastructure project that the established to lapses in
"Design and Water statutory procedures the
Supply System" from the had been followed, implementat
feasibility study to the from the ion of RA
award and signing of feasibility study to the 9184
contract thus hinting non- issuance and
conformity with Sections receipt of the
17.1, 17.6 and 37.2.3 of Certificate of
the Revised Acceptance
Implementing Rules and and Turn-over,
Regulations (IRR) of including the
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
Republic Act (RA) 9184 corresponding receipt,
as well as sections 3.1.1, disposition and
3.1.4, 3.1.5 and 4.1 of utilization of funds;
COA Circular 2009-001 otherwise the
dated February 122, doubtful validity as
2009; in turn establishing well as propriety
the conclusion that said of the agency's
project undertaking administration of the
remained unascertained subject loan will be
as to validity and established.
propriety.
AF#1 37. The Water We recommended for
2013 District disbursed funds management
AAR; for lot purchase despite to cease from making
AF#7 absence of a deed of sale further advance
2011 and supporting payments for
AAR documents contrary to undelivered
Sections 2 and 4 (6) of procurements
PD 1445, COA Circular pursuant to Section 88
2012-001 dated June 14, of PD 1445.
2012, 39(2) and 88 of The following
Presidential Decree (PD) procedures are further
1445. recommended.

a) The Water District i) Require the seller to Deed of Not Deed of

made advance payments execute a Absolute implemente absolute sale
for the purchase of lot Deed of Absolute Sale Sale had d still not
costing P1.8M despite the in favor of been annotated in
absence of documents the Water District executed but the
showing conveyance of which shall be duly still not property’s
the subject property to its annotated in the annotated in Certificate of
ownership contrary to property's Certificate the Title.
Sections 88 and 39(2) of of Title and Tax Property’s
Presidential Decree (PD) Declaration; Certificate The Land
1445 thus are of doubtful of Title. To still not titled
validity. hire person in the name
in charge for of NWD.
b) The Water District processing
paid capital gains tax of ii) Thereafter, to have the Not
P108,000.00 in the property transactions implemente
connection with the titled under the name of for land d
purchase of lot contrary the Water titling.
to Item 3.2 of COA District;
Circular 85-55A dated Delayed in
September 8, 1985 iii) Require the seller to processing Not
therefore a proper subject refund the for land implemente
of disallowance during Water District of the titling d
post-audit. capital gains tax
of ₱108,000 it paid to
the BIR, in
consonance with COA Difficulty to
 Reason for
Action
Status of Partial/
Audit Taken/
Ref Audit Observations Implementa Non-
Recommendations Action to
tion Implementa
be Taken
tion
Circular 85-55A require
dated September 5, refund due
1985; to the death
of the seller
Submit for audit the
Deed stated in
item (i) together with To hire
authenticated person in
copy of Certificate of charge for
Title bearing processing
the required annotation. the
Said transactions
authentication shall be for land
rendered by titling
the Register of Deeds.