COA finds P51.2M abnormal financial records at Capitol 

BY DAVE SUAN ALBARADO

The Commission on Audit (COA) has flagged the Provincial Government of Bohol (PGBh), led by Governor Aris Aumentado, for misstating P51,200,090.83 in liability accounts due to abnormal and “For ID” item balances totaling P13,928,482.97, according to its latest audit report.

The report has exposed inconsistencies in four major liability accounts—Due to the Bureau of Internal Revenue (BIR), Government Service Insurance System (GSIS), Pag-IBIG, and PhilHealth—where several negative balances were recorded.

COA cited paragraph 7 of the International Public Sector Accounting Standards (IPSAS) 1, stating that liabilities should only represent present obligations, which these negative balances do not.

COA’s analysis found that 4,056 out of 27,925 items in these liability accounts, or 15%, had abnormal or unidentified balances.

The largest discrepancy was in the Due to BIR account, with P6,728,370.28 in abnormal balances, followed by GSIS (P6,236,482.80), Pag-IBIG (P329,680.15), and PhilHealth (P633,949.74).

The presence of these balances indicates accounting errors or misclassifications, with some negative balances potentially representing receivables rather than payables, COA said.

Meanwhile, “For ID” balances amounting to P94,608.00 (GSIS) and P75,677.08 (Pag-IBIG) remain unexplained.

COA warned that these accounting issues expose the provincial government to risks, including unreliable financial reporting and difficulties in determining outstanding obligations.

The discrepancies could also lead to potential fines and penalties from regulatory agencies such as BIR, GSIS, Pag-IBIG, and PhilHealth, COA said.

To address these issues, COA recommended that the Provincial Accountant’s Office (PAccO) assign a team to investigate the root causes of the abnormal balances and reconcile affected accounts.

The team is expected to submit findings and propose adjusting journal entries.

In response, the Provincial Accountant confirmed that reconciliation efforts are ongoing.

However, COA stressed the urgency of resolving these discrepancies to ensure compliance with financial reporting standards and prevent further misstatements.

In another development, the Provincial Government of Bohol has welcomed officials from the Commission on Audit (COA) and pledged its support for the agency’s needs, including office space for accounts and record storage.

Provincial Administrator Asteria Caberte and other officials received the COA team, led by Atty. Hazel Araniez, at the Capitol. 

The meeting addressed the COA’s requirements, and the provincial government assured its full support, including directives to the Provincial General Services Office to address these concerns.

In a separate development, the provincial government is pushing for a solution to ease traffic congestion at the Manga Public Market and Tagbilaran City Hall. 

The government will cover the costs of preparing a feasibility study for a proposed flyover, diversion road, or access road, which will enable the Department of Public Works and Highways (DPWH) to focus on securing funding for the project.

Meanwhile, the provincial government convened a public scoping activity for the Accelerated Water and Sanitation Project in Selected Areas, which aims to increase access to safe water supply and sanitation services in several towns, including Tagbilaran City, Alburquerque, and Panglao.

The project, financed by the World Bank with a $250 million grant, will benefit over 264,000 people and is aligned with the governor’s Strategic Change Agenda.

The public scoping activity, organized by the Provincial Planning and Development Office, gathered stakeholders to discuss the project’s environmental impact and gather concerns from the public. 

Consultants from POEIL Engineering presented an environmental and social impact assessment, while officials from the DPWH and the Department of Environment and Natural Resources (DENR) briefed attendees on the project’s description and the Philippine Environmental Impact Statement system.

The projects are part of the provincial government’s efforts to improve public service and achieve sustainability in the country’s first and only UNESCO Global Geopark and Regenerative Island.