COA to Santander: Account P1.8 million breeding stocks

CEBU, Philippines —  The Commission on Audit (COA) has noted deficiencies in the physical inventory of Santander town’s property, plant and equipment (PPE) totaling to P307.8 million. [Editor’s note: The article titled “COA flags Santander over P307M breeding stocks” and published on July 22, 2021 was incorrect. Only P1,756,300 of P307,924,806 was for the breeding stocks. We apologize for the error.]

In its 2020 audit report, COA said the breeding stocks, which are part of the town’s biological assets, were piglets distributed to qualified constituents.

It was part of the town’s Dispersal Program.

The audit body said the report on the physical count of PPE, including breeding stocks, was “unreliable” because it was not submitted within the prescribed period.

“Thus, the correctness of the property records of both Accounting Office and Property Unit against actual items on hand and their corresponding values were not ascertained,” it said.

Report on Physical Count of Property, Plant and Equipment (RPCPPE), COA said, shall reflect the total and actual value of the fixed assets owned and shall serve as the basis in determining the accountability and/or responsibility of the local chief executive and the municipal treasurer as far as these assets are concerned.

Local government units are required to have a periodic physical count of PPE, which should be done annually and reported on the RPCPPE as of December 31 of each year and submitted to the auditor concerned not later than January 31 of the following year.

This report, COA said, will enable the auditor or any other official concerned to determine and verify the existence, status, condition and location of the said government properties.

“The purpose of inventory-taking is to safeguard the assets of the municipality against losses due to pilferage and other forms of misappropriation, wastage, obsolescence or damage or any unauthorized removal or transfer of assets of the municipality,” COA said.

In response to the audit observation, the town said its accountant provided an unnumbered memorandum dated March 09, 2021 duly issued by the municipal mayor directing the Inventory Committee to conduct physical count of all properties and equipment.

It said that the inventory committee immediately submitted the RPCPPE.

It added that the RPCPPE of previous years were regularly submitted every year only that the date of submission was beyond the deadline.

The town was also asked to submit a separate report on the Physical Count of Biological Assets (RPCBA), specifically the breeding stocks.

Assets

On the other hand, COA, in its report, said the assets of the town increased by 4.94 percent or P20,000,875.69, while its liabilities decreased by 5.36 percent or P4,419,509.99 compared to the previous year.

The increase in assets and decrease in liabilities brought about an increase in equity in the amount of P24,420,385.68 or 7.57 percent compared to the 2019 equity.

COA added that the town’s financial performance for calendar years 2020 and 2019 also increased.

The total income in 2020 increased by P5,663,253.59 or 3.12 percent, while total expenses also increased by P24,386,349.99 or 16.93 percent compared to that of the previous year.

The surplus registered a significant decrease of P18,723,096.40 or 49.77 percent of the 2019 Surplus.

For calendar year 2020, COA said the municipality had undertaken various programs, projects and activities based on the submitted completed and implemented projects like local access road in Barangay Looc worth P10,784,831.11; Welfare Goods (COVID response) worth P8,255,097.35; 1 brand-new pick rescue vehicle worth P2,497,874.00; 1 brand-new fire truck worth P3,450,000.00; and Rizal monument worth P149,261.60. — KQD (FREEMAN)