State auditors chide Capitol on erroneous bank deposits
THE Cebu provincial government recorded P2.3 billion in cash in the banks by the end of last year, but state auditors said the actual amount was P154.2 million less than what was deposited based on their evaluation.
The Commission on Audit (COA) said in its Annual Audit Report (AAR) that the difference in amount was “substantial” and it “casts doubts on the accuracy and validity of the reported cash in bank balances.”
Based on the Capitol’s trial balance provided by the provincial government and reviewed by the COA, the P2,313,925,130.72 listed as cash in bank is divided into the general fund (P1.7 billion), Special Education Fund (P143.6 million) and trust fund (P396.2 million).
COA said a bank reconciliation statement wasn’t submitted in time by the province which led state auditors to send confirmation letters to the province’s different depository banks.
“Bank confirmations revealed substantial differences totaling to P154,242,171.78 between balances per bank records and the balances per accounting books,” the COA report read.
COA asked the provincial government to require the Provincial Accountant’s Office to reconcile the differences in order to present accurate information.
They also asked that the provincial accountant submit a written explanation as to why there were bank accounts not confirmed by the banks and to submit documents to prove that the accounts really exist.
Former provincial accountant Marieto Ypil explained to the COA that there were outstanding checks indicated in the documents they submitted.
Ypil was replaced by Ramon Dumayac as the new provincial accountant starting last July 1.
Dumayac said the checks were already released to its respective recipients.
“These checks could include payment to suppliers among others. Or this could also mean that while the checks have been issued, it could still be remaining with the treasurer’s office,” he told reporters yesterday.
Dumayac said he will make sure that there is regular updating and reconciliation of records between his office and the Provincial Treasurer’s Office.
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