COA questions dormant ‘Araw ng Dabaw’ account

DAVAO CITY – The Commission on Audit (COA) questioned the status of a bank account in the Land Bank of the Philippines (LBP) with the account name “77th Araw ng Dabaw, Administrator’s Office, City Government of Davao,” according to its latest audit for calendar year 2016.

According to the COA report, the account was not accounted for in the books nor disclosed in the notes to the financial statements of the city government for the year 2014 when the 77th edition of the annual festival was held.

The COA report said the non-disclosure “affected the fairness of the presentation of the financial statements” of the city in violation of disclosure requirements.

The Trust Fund in question was Current Account No. 1472-1042-64, the COA report stated.

COA had asked the local government’s accounting unit to disclose the fund since these were still regarded as public funds rightfully under the control of the city government.

LBP had told the COA that the year-end balance for the account was R3,800.

The account had been reported in the previous year’s annual audit report as a dormant account amounting to R271,899.28.

“However, this account was not recorded in the books of accounts,” the COA said.

The Audit Team sent a letter to the City Accountant and City Treasurer dated December 13, 2016, inquiring on the status of their verification of this account and asking for clarification on the source, nature, and purpose of maintaining such.