Inquirer files
MANILA, Philippines 鈥� The Commission on Audit (COA) raised a discrepancy in the year-end balance of the cash-in-bank account of Malabon City for 2023.
According to the COA, in its letter dated May 16, it was observed that the balance of the city鈥檚 cash-in-bank account was unreliable due to the discrepancy.
READ:
鈥淭he accuracy, existence and validity of the year-end balance of the Cash in Bank (CIB) account totaling P2.183 billion [were] unreliable due to the noted discrepancies of P392.859 million and (P24.877 million) when compared with the balances per cashbook and per bank confirmation,鈥� the COA said.
The discrepancies stemmed from the 鈥渁bsence of reconciliation between the subsidiary ledger (SL) and cashbook鈥� and a 鈥渟ignificant delay in the preparation and submission of Bank Reconciliation Statement (BRS).鈥�
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In addition, the year-end balance of the city鈥檚 Property, Plant and Equipment (PPE) accounts that were more than P4 billion was also unreliable due to PPE items lumped and described as 鈥淏eginning Balances鈥� but were not given appropriate descriptions, and among others, the COA added.
鈥淭he year-end balance of the Property, Plant and Equipment (PPE) accounts amounting to P4.265 billion was unreliable due to: (a) PPE items lumped and described as 鈥淏eginning Balances鈥� and without appropriate description amounting to P37.638 million [鈥,鈥� it added.
Meanwhile, the COA said that it had a 鈥渜ualified opinion鈥� of the city鈥檚 financial statements.
鈥淭he Auditor rendered a Qualified Opinion on the fairness of the presentation of the City鈥檚 financial statements in view of the significance of the exceptions noted in the audit as stated in the Independent Auditor鈥檚 Report,鈥� it added.
For the first discrepancy, the COA recommended to Malabon City Mayor Jeannie Sandoval to order the city accounting department (CAD) to properly document and adjust the city鈥檚 bank accounts, to prepare and submit the documents to the COA, and for the city treasury department (CTD) to record the two bank accounts maintained with the Land Bank of the Philippines.
In addition, the COA also recommended Sandoval to order the CAD to determine the details of the PPE. the inventory committee to establish the cost of the PPE, and for the city general service department to verify whether the missing PPE was disposed of or transferred to other government agencies for the second discrepancy.
As of writing, Inquirer.net has reached out to Malabon City for comment but it has yet to receive a response.