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Friday, July 28, 2006
Cebu City follows only a third of list
In 2005, the Cebu City Government enforced only four of 12 recommendations by state auditors who checked its 2004 books of account.
According to the Commission on Audit (COA), the City already corrected its understated foreign loans, land assets and valuation of constructions in progress by preparing the necessary journal entry vouchers (JEVs).
The same lapse, however, was still committed last year.
In its annual audit report for 2005, COA suggested that the personnel in charge of recording the loans regularly reconcile the records with that of the loan conduit, the Land Bank of the Philippines.
Doing so, however, may prove difficult because of the fluctuating yen-to-peso conversion rate.
Of the City’s P5.25 billion in long-term liabilities, foreign loans represent 98.76 percent, or P5.185 billion.
The figure was based on the conversion rate at the time COA made the audit report.
According to COA, City Hall also corrected its overstated and understated accounts in both the general and special funds.
But due to the bulk of work, City Hall only “partially implemented” seven other COA recommendations on its 2004 records.
Among others, the City failed to fully cancel stale checks amounting to P313,109.
COA had recommended that before the City Treasurer’s Office (CTO) issues replacement checks, the originals and certified true copies of the corresponding disbursement vouchers from the City Auditor should be presented.
It likewise asked the CTO and the General Services Office (GSO) to speed up the completion of required supporting documents, so the City accountant could record payments made.
And although the City adjusted already the vouchers for P74.791 million in its bank accounts, it failed to reconcile records on garnished amounts totaling P43.7 million “due to the absence of supporting documents.”
Also, the City failed to adjust the understated entries in the unpaid portion of land purchases, despite partial payments made.
Although it adjusted its records to reflect P42.717 million as debts instead of expenses in land assets, the City did not deduct from its records the P14.348 million paid last year. (RHM)
For Bisaya stories from Cebu. Click here. (July 28, 2006 issue)
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