The Commission on Audit (CoA) has called out the municipal government of Balabagan, Lanao del Sur, for failing to submit records of properties and assets worth ₱300 million, raising concerns about the accuracy and reliability of its financial accounts.
State auditors questioned the validity of Balabagan’s financial statements, citing the municipality’s failure to provide audit documentation for ₱297.59 million worth of assets. This omission has limited CoA’s ability to verify the accuracy of the town’s financial records.
“We issued a qualified opinion on the fairness of the financial statements due to the Property, Plant, and Equipment account amounting to ₱297,590,771, which could not be verified because of the non-submission of the Report on the Physical Count of Property, Plant, and Equipment, rendering the account unreliable,” CoA stated in its report.
The report also highlighted that the local government’s inability to conduct a physical inventory and submit the necessary records hindered the reconciliation of accounting and property records. This lapse has affected the overall reliability of the financial statement.
The municipal government of Balabagan has not yet provided an official response to CoA’s findings. However, the local government has assured CoA that it plans to comply with the audit requirements once its annual inventory is completed, according to the report.
CoA’s findings emphasize the importance of maintaining transparent and accurate financial records to ensure accountability in government transactions. The auditors urged the municipal government to prioritize the submission of the required documents to avoid future discrepancies.
