Catbalogan City Executive Summary 2022
Catbalogan City Executive Summary 2022
Einführung
The City of Catbalogan (City) was created on March 15, 2007 by virtue of Republic
Act (RA) No. 9391, otherwise known as “AN ACT CONVERTING THE
MUNICIPALITY OF CATBALOGAN IN THE PROVINCE OF SAMAR INTO A
COMPONENT CITY TO BE KNOWN AS THE CITY OF CATBALOGAN”. However,
the City, along with 15 other cities, temporarily lost its cityhood status when the Supreme
Court of the Philippines approved a petition brought by the League of Cities of the
Philippines and declared invalid the cityhood law (RA 9391) that allowed the town to
obtain city status. The City and the other 15 cities affected filed a move for reconsideration
with the court on December 10, 2008. More than a year later, on December 22, 2009, the
court reversed its earlier decision, ruling that "at the end of the day, the passage of the
amendatory law (regarding the criteria for cityhood as set by Congress) is no different
from the enactment of a law, i.e., the cityhood laws specifically exempting a particular
political subdivision from the criteria earlier mentioned. Congress, in enacting the
exempting law/s, effectively decreased the already codified indicators”. As a result, the
City's cityhood status was effectively restored. The City is politically subdivided into 57
barangays and has a total land area of 274.22 square kilometers or 105.88 square miles
which constitutes 4.53% of Samar's total area.
For Calendar Year (CY) 2022, the City intended to have a solid ground for a
sustained development for all sectors and integrating and preparing for, responding to and
recovering from the impact of disasters and contain the spread of diseases.
Under the administration of Hon. Dexter M. Uy, with the legislative body
composed of 12 Members of the Sangguniang Panlungsod, headed by Hon. Coefredo T.
Uy, and with 463 employees, the City continues to implement programs consistent with its
vision of providing delivery of basic services to its constituents.
An audit was conducted on the accounts and operations of the City for CY 2022 in
accordance with International Public Sector Standards on Auditing with emphasis on the
audit thrusts for the Local Government Sector on the audit of Financial Statements of the
following accounts - Cash & Cash Equivalents, Property, Plant and Equipment, Loans
Payable, Real Property Tax and Special Education Tax Receivable, Accounts Payable, Due
to NGAs/LGUs/GOCCs, and Other Significant and Material accounts identified in the
Materiality Thresholds.
The audit included examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the appropriateness of accounting
principles used and the reasonableness of accounting estimates made by management;
verification, reconciliation and analysis of financial accounts; as well as evaluating the
overall presentation of the financial statements. It also involved ocular inspection of
infrastructure projects undertaken; interview with officials/employees concerned; and
other audit procedures and techniques considered necessary under the circumstances.
Financial Highlights
Comparative analysis of the City’s total assets, liabilities, equity, income and
expenses for CY 2022 and the immediately preceding year showed an increase of the
Assets, Liabilities, Equity, Income and Expenses as seen in the graphical presentation. The
material increase in assets and equity account is due to the significant increase of cash
provided by Operating, Investing and Financing Activities due to the onset of the National
Tax Allotment, the increase in the procurement of capital outlays and the increase of the
Surplus for the period.
2,500,000,000.00
2,000,000,000.00
1,500,000,000.00
1,000,000,000.00
500,000,000.00
-
Assets Liabilities Equity Income Expenses
2022 2,018,012,054 443,948,960.8 1,574,063,093 1,359,094,874 1,032,718,868
2021 1,684,838,137 278,281,342.8 1,333,680,618 885,513,867.5 634,408,207.1
2022 2021
The following graph also illustrates the changes in appropriation and obligations
during the year which shows a decrease in CY 2022 appropriations and an increase
obligation in comparison to CY 2021 data.
2022 2021
Detailed Appropriations
(in Philippine Peso)
1,600,000,000.00
1,400,000,000.00
1,200,000,000.00
1,000,000,000.00
800,000,000.00
600,000,000.00
400,000,000.00
200,000,000.00
-
PS MOOE CO FE Total
2022 324,368,760. 575,077,347. 294,067,405. 14,096,304.8 1,207,609,81
2021 294,423,378. 425,949,840. 731,081,875. 34,467,096.8 1,485,922,19
2022 2021
SIGNIFICANT ACCOMPLISHMENTS
The significant PPAs accomplished by the City in CY 2022 were reported and
certified complete by the management, as follows:
Infra Projects
a. Deposit all collections promptly and intact with the authorized government
depository bank;
2. The City did not meet the target collection set by the Bureau of Local
Government and Finance (BLGF) for Calendar Year (CY) 2022 due the
failure of City Treasurer’s Office (CTO) to strictly follow the procedures
prescribed under Sections 254 and 256 of RA No. 7160 relative to the
enforcement of collections of real property taxes, depriving the constituents of
the funds that could have been collected and be used to augment funding of
priority projects for the development of the City. Likewise, the computed Real
Property Tax (RPT) and Special Education Tax (SET) penalties per Statement
of Account were reduced upon payment by the taxpayers, without legal basis
contrary to the City Ordinance No. 2022-111.
ii. Prepare and issue the Notices of Real Property Tax Delinquency (first,
second and final) to delinquent tax payers;
iv. Collect in full the penalties reflected in the RPT-SAO for collections of
delinquent RPT/SET dues.
b. Require the City Government officials and employees to make prompt payment
of their real property tax dues.
d. Require the City Internal Audit System Office to monitor compliance by the
City’s departments and offices of the audit recommendations.
ii. Regularly check, monitor and keep the Payable accounts updated
and adequate;
iv. Effect the necessary adjusting entries for the double entry and
misclassification of accounts pursuant to Annex B of COA Circular
No. 2015-009 dated December 1, 2015.
4. Payment to the City’s permanent, contractual, and job order personnel of One
COVID-19 Allowance (OCA) for the period January 2022 to June 2022
aggregating ₱3,660,750.00 were not supported with complete supporting
documents, thus casting doubts on the validity and regularity of the payments.
Likewise, the amount paid for OCA were erroneously recorded as Honoraria
instead of Other Personnel Benefits and Other MOOE for payments to regular
employees, contractual and job order employees, contrary to International
Public Standards Accounting Sector (IPSAS) 1 and COA Circular No. 2015-
009, affecting the fair presentation of the financial statements.
a. The concerned CHO personnel to submit immediately to the audit team, thru
the Accountant, the following documents to establish their claim to OCA:
5. Various deficiencies were noted on the utilization of the Local Disaster Risk
Reduction and Management (LDRRM) fund and acquired inventories such
as: a) available fund for preparedness, prevention and mitigation was not fully
utilized; b) Investment Plan not compliant to the required format; and c)
failure to maintain documents and report for the receipt and utilization, and
to comply with the reporting requirements of received in-kind donations,
thereby affecting the fair presentation of affected accounts in the financial
statements; the capability of the City to effectively and efficiently prevent
losses and alleviate the impacts of disasters; and exposing the resources to risk
of loss/wastage, mishandling and misappropriation.
We reiterated our prior year’s audit recommendations that:
a. The City Mayor directs the City DRRM Officer to prepare the LDRRMFIP
in accordance with the prescribed format under COA Circular 2012-002 for
LDRRMF’s current appropriation and previous years’ LDRRMF unexpended
balance.
b. The City, through the City Mayor, maximize the utilization of appropriated
funds for disaster preparedness, prevention and mitigation in order to further
enhance the capability of the City to effectively and efficiently prevent losses
and alleviate the impacts of disasters.
We likewise recommended that the City, through the City Mayor require:
ii. Maintain the Registry of Donated Relief Goods for DRRM for donated
relief goods;
iii. Prepare and submit to Office of the Civil Defense (OCD), Auditor of the
OCD and to City COA Auditor, the Monthly Report on the Receipt and
Distribution/Issuance of Donated Relief Goods;
v. Prepare and submit the monthly Inventory List of Items for DRRM
supported with the required supporting documents to COA and to City
Accounting Office.
c. The City Accountant to ensure that all Acknowledgement Receipts for the In-
Kind donations are submitted for recording and disclosures in the financial
statements are made of the received in-king donations; and
d. The City Internal Audit System Office to monitor compliance of the audit
recommendations by the concerned officials and employee/s
b. Ensure that study tour or similar conducted outside of the geographical island
activity is anchored on good practices and is drawn from the list of publicly
recognized good practices downloadable from, but not limited to, the website of
the Galing Pook Foundation (www.galingpook.org), of the Local Government
Academy (www.lga.gov.ph) and of the Department of the Interior and Local
Government (www.dilg.gov.ph, pursuant to DILG Memorandum Circular No.
2011-59; and
c. Require the City Internal Audit System Office to monitor compliance of the audit
recommendations by the City’s departments and offices.
We likewise recommended that the City, through the City Mayor require the City
Internal Audit System Office to monitor compliance by the City’s departments and
offices of the audit recommendations.
8. Various deficiencies were noted on the City’s reverse logistic procedure such
as: a) receipt, safekeeping and transfer of used and discarded vials were
assigned to person with incompatible position; b) improper storage of the
vials; and c) delayed transfer of the vials and submission of consolidated Form
A – Reverse Logistics to PHO contrary to Department of Health (DOH)
Department Circular (DC) No. 2021-0439, thereby affecting the timeliness and
accuracy of the DOH’s consolidated report of used and discarded vials, and
may expose people to infectious waste and a potential health risk.
a. Assign the receipt, safekeeping and transfer to PHO of the used and
discarded vials functions to Sanitation Inspector (SI).
b. Require SI to properly store and transfer the vials together with the
consolidated Form A – Reverse Logistic to PHO every Friday of the
vaccination week.
We likewise recommended that the Management require the City Internal Audit
System Office to monitor compliance of the audit recommendations by the
concerned employees.
The balance for the audit suspensions, disallowances and charges as at December
31, 2022 was ₱5,866,435.50, ₱17,047,970.53, and ₱00.00, respectively, or a total of
₱22,914,406.03, based on the Notices of Suspension (NS), Notices of Disallowance (ND)
and Notices of Charge (NC) issued by this Commission. While any NS, ND and NC for
CY 2022 post-audit of transactions are still to be issued.
Status of Implementation of Prior Years’ Unimplemented Audit Recommendations