Thursday, September 25, 2008 COA notes lapses in disbursement of Borbon funds
AN inaccurate financial statement and improper disbursement of public funds were among the bureaucratic lapses that state auditors discovered in the records of the Municipal Government of Borbon, Cebu last year.
The Commission on Audit (COA) 7, in its annual report, said the failure of Mayor Butch Sepulveda to appoint a full-time municipal accountant resulted in the delayed submission of an accurate financial statement worth more than P18 million.
The council secretary, also designated as concurrent accountant, attributed the delay to the checks paid that were arranged and sorted by month in the bank statements.
The secretary, in turn, tasked the preparation of the financial statement to a job-order employee.
This resulted in the delayed submission of the financial statement as of Dec. 31, 2007.
Not submitted
“Only the consolidated balance sheet, consolidated statement of income and expenses, and consolidated statement of cash flows were submitted on April 12, 2007,” read the COA 7 report.
Auditors said the consolidated balance sheet was later returned to the executive department because it was “erroneous” and that the total balance sheet did not match with the total liabilities and equity.
“It can be concluded that the reports were not reviewed by the designated head of the office,” the auditors.
Hire accountant
State auditors asked Mayor Sepulveda to immediately hire a qualified and full-time accountant so an accurate and reliable financial report can be submitted on time.
Likewise, auditors said the accuracy of the cash in bank of the Municipal Government worth more than P18 million could not be ascertained due to the failure of the Municipality to task a qualified accountant who is supposed to do the latest bank reconciliation statement.
Auditors also called the Municipality’s attention for disbursing over P3 million in employees’ salaries, year-end bonuses, and maintenance of roads and bridges from the 20-percent development fund. (GMD)
