An audit of the Provincial Government of Bohol (PGBh) has uncovered mysterious accounting irregularities related to the recording of breeding livestock, according to a report by the Commission on Audit (COA).

The audit found that breeding stocks produced or owned by PGBh were not properly recorded in the government’s books, contrary to COA Circular No. 2015-009 and International Public Sector Accounting Standard (IPSAS) 27 on Agriculture.

COA said the oversight has led to an undetermined amount of misstatements in PGBh’s financial statements, particularly in the understatement of biological assets and government equity.

State auditors noted that the irregularity also affects related income and expense accounts.

The Provincial Accounting Office (PAccO), in a rebuttal, claimed they were unaware of the existence of these breeding stocks.

But COA auditors attribute this to a lack of proper accounting policies and control procedures for recognizing and measuring biological assets.

While the Office of the Provincial Veterinarian (OPV) asserts it regularly submits inventory reports on breeding stocks, PAccO claims no knowledge of such submissions.

COA said Capitol’s practice exposes PGBh to various control risks, including the possibility that breeding stocks throughout the year may not have been fully accounted for, leaving them vulnerable to loss or misappropriation.

COA has recommended that PGBh management, through the PAccO and in coordination with the OPV, properly account for all breeding stocks owned. This includes applying the recognition and measurement principles for biological assets under IPSAS 27 and making necessary adjusting journal entries.

Based on COA documents, the breeding stocks involved by the Provincial Government of Bohol include:

1. Swine:

   a. Exotic (white)

      – Female breeders: 7 (Five from UNAHCO, Inc. and two were farm produced)

      – Male breeders: 3 (Two from UNAHCO, Inc. and one was farm produced)

      – Piglets: 43

   b. Native Pig

      – Female breeders: 5 (Four from Ubay Stock Farm and one was farm produce)

      – Male breeders: 2 (Farm produce and a borrowed boar)

      – Piglets (2 months and below): 5

2. Poultry:

   a. Native Chicken

      – Female breeders: 117 (Farm produce)

      – Male breeders: 24 (Farm produce)

These breeding stocks are located in the PGB’s Provincial Livestock and Poultry Farm (PLPF) in Bilar, Bohol, according to the inventory report.

The document also mentions other types of breeding stocks in general, such as carabao and horse, although specific quantities for these are not provided in the given inventory.

According to COA, the exact amount involved in the irregularity is not specified.

The report states that there is “an undetermined amount of aggregate misstatements from the understatement of PGBh’s biological assets, government equity including the related income and expense accounts.”

COA document mentions that “The actual amount, however, cannot be measured for lack of relevant accounting data concerning the cost and/or fair values of the breeding stocks still owned by PGBh.”

The lack of a specific figure is due to several factors:

The Provincial Accounting Office (PAccO) did not record the breeding stocks in their books. There’s a lack of coordination between the Office of the Provincial Veterinarian (OPV) and PAccO regarding financial reports on breeding stocks. There are no available accounting data in both OPV and PAccO pertaining to costs or fair values of the breeding stocks.

COA said that while the irregularity is significant enough to impact the financial statements and expose the provincial government to various risks, the exact monetary value of this discrepancy is not provided by Capitol due to the absence of proper records and accounting data.