COA cites anew lack of insurance for Intramuros artworks, antiques

WORKS of art and other antiques in Intramuros remain uninsured due to the lack of appropriations by the Department of Budget and Management (DBM).

The insurance deficiency was again pointed out by the Commission on Audit (COA) in its latest evaluation of the Intramuros Administration’s (IA) financial statements for 2021. “The insurance of IA’S physical assets with Net Book Value of P227.36 million only covers up to P219.56 million. The [audit] also noted that Works of Art or high value antique items in custody of IA amounting to P36.16 million were not covered by insurance policies.”

COA reiterated its recommendation that IA management “continue to make representation with DBM to allocate funds and incorporating in the annual budget of the agency the amount necessary for the appraisal of antique items and to cover increase in premiums relative to the additional insurance coverage for all of its insurable assets with the General Insurance Fund of the GSIS (Government Service Insurance System) to ensure that the government will be indemnified for any damage or loss of these properties.”

However, DBM again failed to make any relevant appropriations for this in IA’S budget for 2022. Intramuros administrator Guiller Asido told the Businessmirror, “Despite our constant pleas,” DBM cut out the P8 million the agency requested for insurance. In fact, IA’S total approved budget this year is just a “paltry amount of P62 million,” P206 million off its total requested budget.

Slow court cases delay collections of ARS

COA also cited close to P15 million in account receivables (ARS) which were “doubtful of collection” because of the slow pace in ongoing court cases with former tenants and lessees who owe the agency some P12.11 million, while P2.83 million were still owed by some concessionaires, which the agency has yet to sue.

COA said IA management agreed to “exert more effort” in demanding the collection of long-outstanding receivables from said concessionaires, many of these pending from two to 10 years. “If warranted, seek the assistance of other government offices that can provide information needed in serving demand letters and/or may opt to submit to the Office of the Solicitor General for the filing of cases as deemed necessary.”

Unmodified opinion

THE government audit agency did give an “unmodified opinion” of the fairness “in all material aspects” of presentation of IA’S financial statements as of December 31, 2021. It also said the agency “was able to fully accomplish or even exceeded its targets in 13 of the 17 activities under four Organizational Outcomes. Four of the activities fell below target due to the Covid-19 restrictions, and resulted in lower visitor arrivals; lower occupancy of commercial properties; less occupancy of IA event facilities; a larger decrease in revenue; and a dip in the number of building, repair and other ancillary permits process/issued within three days.

Despite the physical restrictions during the quarantine period, IA was able to hold important online activities last year, “with a view to sustain the tourism promotion program of Intramuros. It was able to accomplish 68 events in this aspect, which surpassed the target of 28 events,” according to COA.

Other significant observations by COA was its inability to ascertain the accuracy of IA’S properties and equipment as no physical inventory was made last year; delayed procurement process and project implementation resulted in the obligation of just 76.8 percent of IA’S P112.06-million total allotments; no funding for projects for seniors and persons with disability; delayed remittance to GSIS of withheld premiums and loan payments of employees; and an outstanding balance of some P2.18 million in audit disallowances.