COA tells Senate to explain P74 million in bank deposits

MANILA, Philippines - The Commission on Audit (COA) wants the Senate to account for about P74.36 million in bank deposits and to explain a P4.116-million accounting discrepancy in the acquisition of equipment.

“There was an unaccounted bank balance per bank confirmation inquiry in the amount of P74,360,617.39, validity of which could not be determined due to the non-submission of Bank Reconciliation Statements,” Emilio Asi Jr., COA supervising auditor, said in a letter to Senate President Juan Ponce Enrile. The COA letter was dated April 25 this year.

Asi also pointed out that the Senate’s Property Plant and Equipment accounts were “doubtful due to unreconciled difference of P4.116 million between the Legislative Accounting Service and the Report on the Physical Count of Property, Plant and Equipment.”

“Cash in bank account is of doubtful validity due to non-submission of Bank Reconciliation Statements for November and December 2009,” the COA report said. The report showed the funds are in MDS Bank under account 2304-9000-90.

The COA also found procedural lapses in the award of contract to Jhebtronics Trading. The resident auditor said the Senate failed to follow procurement procedures.

A COA review showed that eligibility screening was not strictly observed when the Senate entered into an agreement with Jhebtronics Trading for the supply of labor and materials for the setting up of video systems in four committee rooms.

“We recommend that the Bids and Awards Committee adhere strictly to the guidelines laid down under Section 20, Rule VII, implementing rules and regulations of RA 9184 as to setting up of criteria for eligibility screening to ensure fairness, reasonableness and that they are of the pass/fail category,” the COA said.

The COA did not find credible the reply of Deputy Secretary for Administration and Financial Services Arnel Jose Banas that there was a mix up in two separate bidding processes.