BSU incurs P7-million loss on unpaid scholarship grants

MANILA, Philippines - The Commission on Audit said the Bulacan State University (BSU) has incurred P7 million in losses due to unpaid scholarship grants.

In a four-page Audit Observation Memorandum dated Feb. 9, 2009, COA supervising auditor Bernardo Garcia said the BSU, one of the province’s leading tertiary education institutions, has accumulated account receivables amounting to P7,158,809 from several scholarship benefactors.

Garcia said that of the P7,158,809 unpaid scholarship grants, P5,846,543 has been incurred from 2007 to 2009 by the scholars of Wilhemino and Victoria Sy-Alvarado, vice governor and first district representative of Bulacan, respectively.

COA records showed that the Alvarados’ scholars failed to remit to the BSU the tuition and other expenses of their scholars for the second semester of school year 2007-2008 and for the first and second semesters of school year 2008-2009.

The COA said unless the grantors paid their obligations, the BSU scholars will be trimmed down to prevent continuing financial losses of the institution.

“We recommend that the accounting division closely monitor the collection of these scholarship grants to avoid an accumulation which result in bad debts. A written agreement with the scholars’ benefactors must be executed to bind them with their obligation and ensure prompt payment,” the COA said.

The COA also recommended that the accounting division of BSU should prepare an accounting entry to recognize the unpaid amount of P7,158,809 “as accounts receivable and accordingly adjust the affected income account.” – Jose Rodel Clapano