The Department of Interior and Local Government (DILG) is giving Cebu City Hall until today to submit the Commission on Audit for 2011.
Neila Aquino, DILG-7 Local Operations Officer said other local government units have already submitted their COA report, “so we presume that Cebu City will also submit this week.”
Aquino said City Hall only needs to submit at least the summary of the COA annual report.
Failure to comply with the deadline may result in Cebu City losing its Seal of Good Housekeeping (SGH) from the DILG.
Aquino said Cebu City already qualified in the the other SGH criteria on the compliance with the Anti-Red Tape Act, full disclosure policy and its comprehensive development plan.
The only criterion the city needs to satisfy is the COA report that contains “no adverse findings.”
“The COA Annual Audit Report is the number one criteria of the DILG to qualify the city for the seal of good housekeeping,” Aquino added.
It provide financial incentives to LGUs that are awarded the SGH.
City Councilor Nida Cabrera is worried with the possibility of the city losing its SGH.
“Financial management is the very backbone in all other things,” said Cabrera referring to the standards of the local government systems.
Cebu City got into the Top 10 in the regional level.
“If we’re not transparent all effort by City Hall will be for wasted,” Cabrera added.
Based on disclosed information on the COA report, an “adverse opinion” have been noted.
The COA’s 2011 report noted that the financial statements “do not present fairly, in all material respects, the financial position of the City Government of Cebu as at December 31, 2011, and of its financial performance and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards.”
COA also emphasized in their 2011 report, that the mayor didn’t sign the Statement of Management Responsibility for Financial Statements.
Under the report, the statement of Management Responsibility is a component of the basic financial statement signed by the city accountant and the city mayor.
It states that management is responsible for all information and representation contained in the financial statements.