COA to Ajuy execs: 'Fix P1.1M 'irregular scholarship fund, P7.9M devt fund
Municipal funds and records of expenditures and projects amounting to over P10 million needs to be fixed in the Municipality of Ajuy. This, government auditors discovered in an annual check made that now comprised the Commission on Audits (COA) latest Annual Audit Report (AAR) on said town.
For starters, receivables of the town on its Real Property Tax and Special Education Tax were based on multi-million estimates that ran contrary to government-prescribed laws. Said practice, the COA notes, deprived Ajuy to "formulate campaign strategies to collect more taxes." Further still, it also deprived decision-makers and users of financial statements pertinent data in the amount collectible from said revenue sources.
Ajuy officials also need to fix nearly P2 million in scholarship program expense with COAs discovery that such was pushed minus a corresponding municipal ordinance "thus resulting in inefficient implementation of the program."
"Besides, there are no express guidelines on the composition of the scholarship grant whether or not it covers tuition fees or miscellaneous fees or both, duration of the grant, responsibilities of the grantor and the grantee, contract of scholarship and the like," the COA report went.
With said COA findings, Mayor Jett Rojas told audit team members that a request will be made for the needed ordinance to be enacted in order for the Scholarship Fund to be established and as a 'cure to said adverse COA finding.
COA also wanted a refund of P108,000 from three Ajuy officials following allowances deemed as illegal and irregular by the Commission. Mayor Rojas, the audit team discovered, designated the towns Medical Officer V as assistant Municipal Health Officer in charge, the Human Resource Management Officer as Department Head 1 and Senior Bookkeeper also as Department Head 1 in the treasurers office. Such designations granted the trio allowances that COA considered unauthorized.
"The employees concerned should be required to refund the unauthorized allowances," COA stated.
Meantime, over P7.9 million in disbursements from the towns 20% Development Fund were deemed by COA as "improperly taken up" in the General Fund proper.
"We recommend that the Municipal Accountant maintain special account for the 20% Development Fund through use of complete subsidiary ledgers to ensure that the funds are appropriated and spent only for the very purpose or purposes for which such funds are intended. She should also prepare separate financial reports and financial statements," the COA continued.
The News Today (TNT) learned that a commitment was reached from said town executive "to act favorably on the recommendation."
And mark the official vehicles as such -- "For Official Use Only." As COA discovered, Ajuys six units of dumptrucks, two ambulances, three motorcycles, one Nissan Frontier, a bulldozer payloader, road grader, road roller and mobile daycare were not marked as prescribed by law.
Mayor Rojas has since ordered for the official marking.
Previous years operation of the Municipality of Ajuy saw the completion of four infrastructure projects, rehabilitation of five schoolbuildings and establishment of four rice demo farms among others.