COA reports PIA for a discrepancy of 206.3 million pesos
MANILA, Philippines – The Commission on Audit (COA) has reported to the Philippine Information Agency (PIA) a discrepancy of 206.304 million pesos in the value of its property, plant and equipment (PPE) from what was declared in its books compared to the physical inventory.
In its 2021 annual audit report, the COA noted that based on PIA’s general ledger books of accounts as of December 31, 2021, its PPE has a total value of 420.128 million pesos.
However, the COA noted in the report on the physical count of PPE (RPCPPE) as of December 31, that there was a balance of only 237.102 million pesos, hence a discrepancy of 206.304 million pesos compared to his books.
The audit body said this could mean that some PPE was missing or not accounted for or that it had been assessed or classified in error.
The largest discrepancy was in office equipment, which was valued at 119.768 million pesos, but the physical count valuation only gave 15.388 million pesos, a difference of 104.380 million pesos. Meanwhile, the value of “other machinery and equipment” was reported in the books as 26.020 million pesos, but the physical count report was only 2.852 million pesos, a discrepancy of 23.168 million pesos.
The COA said the discrepancy between the PIA books and the physical inventory report has been a recurring negative observation since 2017, but the agency has done little to address the issue.
“The unreconciled balance of PPE accounts with the RPCPPE has been an issue since 2017, but management’s efforts to verify the cause(s) of the discrepancy appear insufficient. accounting and assets, the details of the variance could have been easily determined and quickly adjusted,” he added.
The COA nevertheless noted that AIP management had already accepted the audit recommendation to its accountant and estate agent to verify and reconcile the discrepancies and keep the estate records up to date.
Meanwhile, in the same audit report, the COA also called the PIA on 12.275 million pesos of unliquidated cash advances from its Regional Offices (RO).
The COA noted that of the total unliquidated cash advances, 84.06 percent or 10.319 million pesos were granted in previous years, while 1.956 million pesos were granted in 2021.
The COA said this violates Section 89 of PD 1445, which states that no additional cash advance will be issued to a civil servant or employee unless their previous cash advance has been settled or accounted for. .
The COA stated that the PIA accepted the following audit recommendations: continuously send letters of formal notice to all ROs for the liquidation of advances whose target had already been met, refrain from granting new/additional CAs unless the previous ones are liquidated or properly accounted for and to withhold the salaries of the relevant responsible officers who have not liquidated the outstanding CAs until these have been fully liquidated.
Established in 1986, the PIA is an agency under the President’s Office of Communications Operations whose primary mandate is to “provide the people with accurate, timely, and relevant information that will help them make better decisions.”