COA flags discrepancy in Malabon’s 2023 cash-in-bank account

Inquirer files

MANILA, Philippines — The Commission on Audit (COA) raised a discrepancy in the year-end balance of the cash-in-bank account of Malabon City for 2023.

According to the COA, in its letter dated May 16, it was observed that the balance of the city’s cash-in-bank account was unreliable due to the discrepancy.

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“The accuracy, existence and validity of the year-end balance of the Cash in Bank (CIB) account totaling P2.183 billion [were] unreliable due to the noted discrepancies of P392.859 million and (P24.877 million) when compared with the balances per cashbook and per bank confirmation,” the COA said.

The discrepancies stemmed from the “absence of reconciliation between the subsidiary ledger (SL) and cashbook” and a “significant delay in the preparation and submission of Bank Reconciliation Statement (BRS).”

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In addition, the year-end balance of the city’s Property, Plant and Equipment (PPE) accounts that were more than P4 billion was also unreliable due to PPE items lumped and described as “Beginning Balances” but were not given appropriate descriptions, and among others, the COA added.

“The year-end balance of the Property, Plant and Equipment (PPE) accounts amounting to P4.265 billion was unreliable due to: (a) PPE items lumped and described as “Beginning Balances” and without appropriate description amounting to P37.638 million […],” it added.

Meanwhile, the COA said that it had a “qualified opinion” of the city’s financial statements.

“The Auditor rendered a Qualified Opinion on the fairness of the presentation of the City’s financial statements in view of the significance of the exceptions noted in the audit as stated in the Independent Auditor’s Report,” it added.

For the first discrepancy, the COA recommended to Malabon City Mayor Jeannie Sandoval to order the city accounting department (CAD) to properly document and adjust the city’s bank accounts, to prepare and submit the documents to the COA, and for the city treasury department (CTD) to record the two bank accounts maintained with the Land Bank of the Philippines.

In addition, the COA also recommended Sandoval to order the CAD to determine the details of the PPE. the inventory committee to establish the cost of the PPE, and for the city general service department to verify whether the missing PPE was disposed of or transferred to other government agencies for the second discrepancy.

As of writing, Inquirer.net has reached out to Malabon City for comment but it has yet to receive a response.