Barili told to record donations

CEBU, Philippines – The Commission on Audit told the Municipality of Barili to properly record the receipt of donations in cash or in kind.

This after COA found out that the construction materials donated by the Province of Cebu costing almost P.5 million were not recorded in the books of the municipality which is in violation of the Government Auditing Code of the Philippines.

Sometime in 2009, the municipality received 1,000 toilet bowls and 1,000 lengths of deformed bars costing P375,900 and P112,800, respectively, from the Province of Cebu for the health and sanitation project.

COA said that the receipt and distribution of these materials were not recorded in the accounting books.

"As a result, as of December 31, 2009, Income from Grants and Donations and the Construction Materials Inventory accounts were understated by P488,700 for the cost of the unrecorded donated materials," it said.

Auditors learned that the municipal accountant was not aware that there were toilet bowls and deformed bars donated by the Province of Cebu as this was directly received by the municipal mayor and the municipal engineer.

"The designated property officer who received the materials should furnish the municipal accountant the documents related to the materials received in order to take up the donations in the book of accounts," the COA audit report said.

Moreover, it further stated that employees who distributed the same materials, should also furnish the municipal accountant the list of distribution duly signed by the beneficiaries or recipients in order to decrease the inventory of the materials received. (FREEMAN)