A recent audit of the Provincial Government of Bohol revealed discrepancies totaling over PhP20 million pesos between cashbook balances and accounting records for development project funds, according to a report released by the Commission on Audit (COA).
The audit found huge differences in the cashbook balances maintained by the Provincial Treasurer’s Office (PTO) compared to the accounting records for two major development initiatives: the Philippine Rural Development Project (PRDP) and the PRDP-Global Environment Facility (PRDP-GEF).
For the PRDP accounts, the discrepancy amounted to PhP14,217,818.29 pesos, while the PRDP-GEF accounts showed a difference of PhP6,540,829.10 pesos.
These variances, according to the COA, “negate the correctness and completeness of the transactions recorded in the cashbooks.”
The audit report cited Section 27 of the Manual for the New Government Accounting System (MNGAS) for Local Government Units, which mandates the maintenance of accurate cashbooks for bank accounts. This requirement is designed to ensure proper recording of cash transactions, including deposits and withdrawals, with daily updates and monthly certifications by accountable officers.
However, the provincial government’s failure to reconcile these differences has showed problems about the utility of these records in monitoring cash balances effectively.
COA warned that without proper adjustments, “the cashbooks maintained by the PTO will have a reduced utility in monitoring cash in bank balances at any given date.”
The audit revealed specific discrepancies across various project accounts:
– The PRDP Equity account showed a difference of PhP9,439,349.11 pesos between accounting records and the PTO cashbook.
– The PRDP GOP account had a variance of PhP100,001.14 pesos.
– The PRDP Loan Proceeds account differed by PhP4,678,468.04 pesos.
– For the GEF accounts, the Equity showed a significant difference of PhP9,943,615.63 pesos, while the Grant account varied by PhP3,402,786.53 pesos.
The administration of Gov. Aris Aumentado attributed the inconsistencies to several factors, including the maintenance of multiple cashbooks by accountable officers and a lack of manpower for timely reconciliation.
The report noted that “quarterly reconciliation with the PACCO for the PRDP cash in bank accounts were not yet performed due to several cashbooks maintained by the accountable officer and lack of manpower in preparing and doing the reconciliation.”
In response to these findings, the COA has issued recommendations to address the discrepancies and improve financial management practices within the provincial government.
The auditors urged Capitol officials, through the PTO and Provincial Accounting Office, to account for the differences in cashbook balances against accounting records and provide necessary adjustments.
Furthermore, COA stressed the need for the PTO to enforce daily updating and balancing of cashbooks for all bank accounts. This measure aims to ensure that these records aid the Provincial Treasurer’s Office in effectively monitoring cash balances at any given time.
The audit report also touched on a separate issue regarding the lack of Memoranda of Agreement (MOA) between the Provincial Government of Bohol and Component Local Government Units for fund transfers related to the National Housing Authority’s SEHAP for Typhoon Odette victims.