Findings No.5 COA Annual Audit Report 2006

July 26, 2008

5. The Provincial Government failed to maintain special accounts in the general fund for the operation of various hospitals and other economic enterprise contrary to Section 313 of Republic Act 7160 and Section 105, Chapter 6, Volume I of the New Government Accounting System (NGAS) Manual.

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Findings No.4 COA Annual Audit Report 2006

July 26, 2008

4. Non-reconciliation between the accounting records and the treasurer’s cashbook on Cash Accounts casts doubts on the validity and existence of the declared balances.

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Findings No.3 COA Annual Audit Report 2006

July 26, 2008

3. Management failed to complete physical inventory conducted of each plant, property and equipment totaling P1,286,480,885.03 in violation of Section 156, COA Circular No. 386 thus, valuation, validity and existence of the fixed assets could not be determined and ascertained. Read more

Findings No.2 COA Annual Audit Report 2006

July 26, 2008

2. Pharmacist assigned in the District hospitals were authorized to collect payments of hospital fees, medicines and other hospital bills without the corresponding bond in violation of Section 101 of PD 1445, thus government funds in their possession are not adequately protected.

Section 305(f) of RA 7160 provides that:

“Every officer of the local government unit whose duties permit or require the possession or custody of local funds shall be properly bonded, and such officer shall be accountable and responsible for said funds and for the safekeeping thereof in conformity with the provisions of law”.

Likewise, Section 101 of Presidential Decree No. 1445 states further that: (1) Every officer of any government agency whose duties permit or require the possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law. (2) Every accountable officer shall be properly bonded in accordance with law.”

Interview conducted revealed that some pharmacist assigned in the District Hospitals are authorized to issue official receipts and collect hospital bills, fees, medicines and other hospital obligations. They were designated but not bonded.

The practice is in violation to the above cited regulations. In case these officials abscond or die; the agency cannot recover lost funds from the fidelity fund.

Bond collected by the Bureau of Treasury shall constitute a fidelity fund. The fidelity fund therefore shall answer for any defalcations shortages and unrelieved accountability after all possible means of recovery of the amount from the accountable official/employee has been exhausted or her/his insolvency declared by a competent court.

Concerned officials reasoned out that some pharmacists of the district hospitals were designated as collecting officers and were authorized to issue official receipts and collect hospital bills, sale of medicines and other fees on Saturdays, Sundays and holidays because the cashiers office on these days is closed. However, they will look into possible solutions to this problem.

RECOMMENDATION

It is recommended that only the designated collecting/disbursing officer who are bonded will be authorized to collect hospital fees, sale from medicines and issue official receipts.

Stop authorizing pharmacist without bond to collect any hospital fees to safeguard government funds pursuant to the existing regulations.

Findings No.1 COA Annual Audit Report 2006

July 26, 2008

1. Cash advances by the disbursing officers of P2,550,291.81 and the accumulated cash advances of P11,208,565.69 by the officers and employees, remained unliquidated at year end in violation of Section 89 of PD 1445 and COA Circular No. 97-002, thereby exposing part of the amount to possible loss, misuse or misappropriation and resulting to the understatement of the expense account and overstatement of assets. Read more

Findings No.6 COA Annual Audit Report 2005

July 26, 2008

6. Projects/Activities programmed under the 20% Development Fund in the total amount of P65,590,176.00 were not fully implemented during the year thus, deviating the development objectives of the provincial government and depriving the constituents the benefits that may be derived there from. Read more

Findings No.5 COA Annual Audit Report 2005

July 26, 2008

5. Provincial Engineers Office has no depot for defective and unserviceable equipment thus, causing more damage to the units and exposing them to risk of loss and wastage of government funds and property. Read more

Findings No.4 COA Annual Audit Report 2005

July 26, 2008

4. Equipment rental income was decreased by P10,746,482 or 46% compared to last year, causing budgetary constraint on the part of the auditee to pay its monthly loan amortization and maintenance of the said equipment. Read more

Findings No.3 COA Annual Audit Report 2005

July 26, 2008

3. Non-reconciliation between the accounting records and the treasurer’s cashbook on Cash Accounts casts doubts on the validity and existence of the declared balances. Read more

Findings No.2 COA Annual Audit Report 2005

July 26, 2008

2. An accumulated amount of cash advances totaling to P25,587,238.15 remained unliquidated at year end in violation of Section 89 of PD 1445 and COA Circular No. 97-002 resulting to understatement of expenses and overstatement of income. Read more

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