Wednesday, August 06, 2008
Naga ‘had no assets inventory’
THE failure of the City of Naga Government to conduct a physical inventory of its assets worth more than P49 million is casting doubts on the City’s financial statements, state auditors revealed.
Likewise, the Commission on Audit (COA), in its annual report released yesterday, rapped the city government for its nondisclosure of its public infrastructure worth over P57 million.
The COA ruled that the failure of the City Government to conduct a physical inventory of its property and equipment violated Section 124 of the National Government Accounting System Manual.
The City’s unrecorded accounts included the general fund worth P39,988,887; special education fund, P2,686,849; and trust fund, P6,738,932.
The City Treasurer’s Office admitted it did not conduct a physical accounting of the city, adding it could not even recall the last time it conducted an actual physical count of its properties.
“As a result of the non-conduct of physical count of its assets, the correctness of the balances of these assets in the financial statements could not be determined,” auditors said.
State auditors asked Mayor Valdemar Chiong to require a physical inventory of supplies and property by creating a committee for it.
After that, COA 7 said the result of the report should be submitted to the accounting office every year.
Government auditors also said the nondisclosure of the City Government’s infrastructure projects worth over P57 million in 2007 violated provisions of the National Government Accounting System Manual.
Among the unrecorded public infrastructure were the construction of roads, highways and bridges worth P3,018,169; construction of parks, plazas and monuments amounting to P43 million; ports, lighthouse and harbors worth P4,675,886; artesian wells, pumping stations and conduits worth P594,510; and waterways, aqueducts and seawalls worth P6,567,695.
“As a result of this deficiency, the government equity account in the financial statements is overstated,” said COA 7.
State auditors asked the City Government to adjust its recording in order to close the completed public infrastructure. (GMD)
For Bisaya stories from Cebu. Click here. (August 6, 2008 issue)
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