The financial conduct of Alfonso, Cavite’s Local Government Unit (LGU) is under scrutiny, revealing lapses in adherence to the Manual on the New Government Accounting System (MNGAS) for LGUs, Volume I, and the 2019 Revised Rules on Settlement of Accounts (RRSA), according to the Commission on Audit (COA). 

The auditing body discovered that the required original Report of Checks Issued (RCI) was not properly filed with the Auditor through the Accounting Office. 

The Municipal Treasurer acknowledged the submission of only the Accounting Copy of the RCI, excluding cancelled checks, which were to be replaced due to being stale.

The audit revealed two critical issues with the cancelled checks:

1. 66 cancelled checks lacked the necessary cancellation marks.

2. Three checks were inappropriately marked as cancelled with pencil, a non-permanent method.

COA said that these findings indicate a broader problem of inadequate internal controls over financial processes within the LGU. The omission of cancelled checks from the RCI submission impedes prompt and accurate review and oversight of these financial documents.

The Audit Team has advised corrective actions, urging Municipal Mayor Randy Salamat to direct:

a. The Municipal Treasurer to mark all cancelled checks as such and include them with the RCI for the Municipal Accountant.

b. The Municipal Accountant to send the RCI with the cancelled checks to the Commission on Audit (COA) for proper examination.

In response, LGU Alfonso has pledged to take remedial steps. 

The Municipal Treasurer will prepare dual copies of the RCI, one for the accounting department and another for audit purposes, attaching all cancelled checks, clearly marked, to the reports. These will be submitted to the Accounting Office monthly, which in turn will ensure their delivery to the COA within 10 days following the month’s end, as per RRSA regulations.

The Alfonso, Cavite LGU’s commitment to correct its financial procedures signifies a move towards enhanced fiscal governance and transparency. Future audits will closely observe the LGU’s compliance with these corrective measures.