Pastrana News – While eighty-nine Eastern Visayas local governments obtained the latest Seal of Good Financial Housekeeping, Pastrana flunked the test a Department of Interior and Local Government (DILG) report disclosed.
DILG region 8 director Pedro Noval Jr. cited the official list released recently by the Bureau of Local Government Supervision.
“I am glad to report that Leyte, Southern Leyte, Biliran, Samar, Northern Samar and Eastern Samar passed the Seal of GFH. So did Tacloban, Ormoc, Baybay, Maasin, Borongan and Catbalogan” said Noval.
Noval added that the assessment was conducted last year through cross posting of Regional Assessment Teams composed of DILG field officers, representatives from civil society organizations and non-government organizations.
The complete list of GFH passers is available at the DILG website www.dilg.gov.ph.
“The seal of Good Financial Housekeeping is a certification requirement for local governments in order to access development loans pursuant to Local Finance Circular No. 1-2012”, director Noval clarified.
The seal also allows qualified municipalities access to local government development programs such as the Grassroots Participatory Process (GPP) and Sagana at Ligtas na Tubig sa Lahat (SALINTUBIG) of the DILG.
Visayan Business Post sources at the DILG disclosed that LGU’s subjected to an “Adverse” or “Disclaimer” opinion from the state Commission on Audit should fully comply with all the findings contained in the opinion. However, this can only be possible on the next Annual Audit Report.
The Municipality of Pastrana received an audit disclaimer, meaning COA had no sufficient basis to form any opinion on the town’s financial statements.
A disclaimer is ‘worse than an adverse opinion’ because this shows management’s failure to perform a basic mandate which is to keep adequate records of an agency’s financial transactions, a USAID study said.
“If the LGU was subjected to an adverse or disclaimer opinion from COA, it should fully comply with all the findings in order to garner a passing opinion on the next Annual Audit Report”, the DILG clarified.