COA: Financial reports of 17 Cebu provincial hospitals have discrepancies
The Commission on Audit (COA) is recommending the Cebu Provincial Accounting Office to look into the accounts of the provincial hospitals to ensure that their cash books remain balanced and settled.
This after COA discovered irregularities with the account statements of 17 of these province-run hospitals.
COA has found that the Bank Reconciliation Statement (BRS) of the Tuburan District Hospital, as of December 31, 2016, has overstated cash book balance by close to P700,000.
According to 2016 COA Report, Tuburan District Hospital's cash book balance should be P6,817,600.15 but the BRS shows P7,508,967.30.
COA also pointed out that the hospital's BRS outstanding checks worth P315,976.48 should be declared as P375,390.60, thus it overstated the balance by P59,414.12.
The state auditor said that their findings were contrary to Section 74 of the Presidential Decree No. 1445 or the "State Credit Code of the Philippines." Under the code, depositories are required to report to the agency head "at the close of each month" or by the end of a month a form that may direct the condition of the agency's account standing on their books.
"The head of the agency shall also see to it that a reconciliation is made between the balance shown in the reports and the balance found in the books of the agency," adds the P.D. No. 1445.
Aside from Tuburan District Hospital, COA added that the BRS submitted by other 16 district and provincial hospitals were reconciled only with their cash book balance and "did not agree with their respective subsidiary ledger balances."
"We therefore recommend that the Provincial Accounting Office be directed to look into these receivable, payable and inventory accounts in subject district hospitals for the proper disposition/settlement and recording thereof," COA stated.
In order to remain fair, COA advised that the accounts must be kept in detail as this is necessary to the needs of the agency, the fiscal or the control agencies of the government.