COA Uncovers P31.5M Abnormal Balances in Bohol Capitol Accounts

A Commission on Audit (COA) report has flagged several liability accounts of the Bohol Provincial Government totaling over P31.5 million pesos for abnormal balances and misstatements, potentially affecting the fair presentation of financial statements.

The COA report, covering fiscal year 2022, identified issues with three main accounts: “Due to GSIS,” “Due to Pag-IBIG,” and “Due to PhilHealth.”

COA said these accounts, which represent obligations to government agencies for employee benefits, showed abnormal and negative balances contrary to International Public Sector Accounting Standards.

According to the audit findings, the “Due to GSIS” account reported a consolidated balance of P26.8 million pesos, which already included abnormal or negative balances totaling P814,924 pesos. 

This affected 1,307 accounts, representing 11% of the 12,194 accounts under this category, COA said.

The “Due to Pag-IBIG” account similarly showed irregularities. Out of 5,625 accounts, 864 or 15% had abnormal or negative balances amounting to 248,519 pesos. The consolidated balance for this account stood at 2.06 million pesos after accounting for these discrepancies, COA reported.

For the “Due to PhilHealth” account, 466 abnormal or negative balances were identified, totaling 593,105 pesos. This affected 9% of the 5,229 accounts in this category. The reported consolidated balance for this account was 2.65 million pesos after adjusting for the irregularities, according to the COA Report.

Auditors noted that these negative balances are considered misstatements as they do not qualify as liabilities under accounting standards. 

The report states, “Negative balances in the liability accounts are not expected to result in outflow of resources.”

The audit also highlighted “For ID” balances totaling over P5 million pesos, which lacked indications of being genuine liabilities.

COA found that these balances remained largely unchanged since the provincial government transitioned from the Old Government Accounting System to the e-NGAS (Electronic New Government Accounting System).

COA emphasized that these issues affect the fair presentation of the provincial government’s financial statements. 

The report cited IPSAS 1, which requires financial statements to “present fairly the financial position, financial performance, and cash flows of an entity.”

The audit report acknowledged that due to the extent of negative and abnormal balances, the specific causes “cannot be timely determined during audit.” 

However, it stressed that these negative balances are considered misstatements as they do not align with the definition of liabilities under accounting standards.

The COA’s findings raise concerns about the accuracy of the Bohol Provincial Government’s financial reporting and its compliance with international accounting standards for public sector entities. 

The report suggests a need for thorough review and reconciliation of these accounts to ensure proper financial representation.

Capitol officials have yet to comment publicly on the audit findings. 

The report’s revelations may prompt calls for improved financial management practices and greater transparency in the provincial government’s accounting procedures.