CEBU, Philippines - The Commission on Audit (COA) has questioned the sale of snorkeling equipment worth P59,049 by Aloguinsan town to reef rangers without any legal authority, resulting in irregular disbursement.
Post-audit showed that the municipality purchased various snorkeling equipment for its tourism activities and later sold them to 24 reef rangers on account, payable in six months and to be fully collected by Dec. 31, 2012.
The COA said that the reef rangers are not town employees but accounting entry of their payment was reflected as debit to the cash-collecting officer and credit to miscellaneous income.
COA likewise noted that the sale was not supported with a municipal council resolution.
A promissory note by the reef rangers showed they should have fully paid by Dec. 31, 2012, but the municipal treasurer’s records showed that only P14,114.50 was collected and that nine of the 24 reef rangers did not even a make single payment.
As a result, accounts receivables was understated by P 44,934.50 end of last year.
COA recommended that the Municipal Tourism Council chairman be required to submit the legal basis for the sale of the equipment to private persons.
It also required the municipal accountant to record as accounts receivable the P 44,934.50 and follow-up its collection, which is already overdue. (FREEMAN)