COA bares discrepancies in Capitol's records
Despite expressly vowed "management responsibility" of Governor Niel Tupas Sr. and Provincial Accountant Lyd Tupas, records on the accounts and operations of the Iloilo Provincial Government showed multi-million worth of discrepancies.
Disclosed in the latest findings of the Commission on Audit (COA), government auditors discovered over P409 million in unverified Capitol assets and nearly P5 million in irreconcilable cash records.
And like in past audits, the Capitol's attention was called anew on huge expenses in catering services, inclusion of closed bank accounts in the report, irregular financial transactions particularly in the Governor's Office and illegal bidding procedures.
On the positive side, records did show Capitol assets to be up at P2.1 billion as compared to previous year's P1.9 billion. This, alongside though Capitol liabilities of over P454 million, some P54 million more to the previous year.
A detailed look into last year's total "cash flows" of the Iloilo Provincial Government further showed significant expenditures including over P34.6 million spent for Capitol's utility expense and "job hires." There was also nearly P.4 million in "extra-ordinary/confidential" expenses and over P7.5 million combined worth of travel by various Capitol officials.
And while the Capitol sits on the grandest and most expensive government infrastructure throughout Western Visayas, government audit bare over P5.6 million in repairs and maintenance expense. There was also over P2.8 million in expressed "prepaid expenses," the details not immediately clear as of press time with separate Capitol "communication expenses" placed at P2,563,426.52.
Governor Tupas in a joint declaration with Provincial Accountant Tupas stated that a system is in place at the Capitol "which provides for the necessary internal controls."
Such "internal controls," both assured the COA, "ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities recognized."
Yet not quite so, the Commission in its latest audit report contends as it moved to seek explanation on at least five major findings. (See related story in tomorrow's issue-Ed.)
Capitol action is also sought and awaited by government auditors on adverse findings from way back in 2004 of the Tupas administration.
Inventories likewise bare over P120.8 million worth of office supplies, nearly P34 million in gas expenses while drugs and medicines bought in the past year only reached P3.5 million.
As for catering services earlier found by COA to be "excessive, extravagant and unconscionable," this year's audit bare practically the same observations.
"Management failed to reply to our audit observation memorandum. For the year 2006, we had observed that catering services were still not subjected to public bidding and economy and austerity on expenses for food and entertainment had not been fully observed by the officials in the province of Iloilo," the report went.
As a matter of procedure, the COA calls on the "management" represented by Governor Tupas to "appropriately act" on the findings and take action within a month.
"The audit was conducted to ascertain the propriety of financial transactions and compliance of the local government unit to prescribed rules and regulations. It was also made to ascertain the accuracy of financial records and reports as well as the fairness of presentation of the financial statements," Director IV Delfin Aguilar of the COA wrote in its letter to the Governor.