Daanbantayan told: Collect the debts from groups and officials

CEBU, Philippines - The Commission on Audit has directed the Daanbantayan government to call the attention of organizations, public officials and employees who need to settle their debts which has amounted to more than P7 million.

“We recommend that management impose sanction in Section 5 of Memorandum of Agreement, for those borrowers who failed to pay despite repeated demands,”

Section 5 of MOA states that “in case the proponent fails to comply with the provisions of this agreement, the agreement is redeemed revoked and shall give rise to a civil and criminal liability,” said COA in its report of the town’s 2014 financial operations.

In its audit report, COA noticed that the town had a “low collection rate” last year wherein only 2.2 percent or P52,000 of the P2.3 million collectibles from various groups, and 3.6 percent or P192,374.96 from officers and employees of P4.7 million was collected.

This is apart from “non-moving” accounts totaling to P2,714,277.11 and the P15,316,019.29 in receivables.

Under loan receivables, as of December last year, Daanbantayan still had to collect P56,000 for Achiever-RIC Malbago, P70,000 from NAGDAMADA Farmers Association-Dalingding, P23,139 from Grapes-RIC Agujo, P100,000 from Mango Growers, P775,567.18 from Isang Bayan, Isang Produkto and several other organizations.

From officials and employees, the town was only able to collect P192,374.87 from liquidation or refund, while P4,790,286.87 has not been returned or liquidated. The amount bloated up from P1.7 million, a balance as of January 1, 2014.

Other account receivables that has remained non-moving are dues from non-government associations (P15,881.22), local government units (P891,768.85), “other funds” (P668,491.65) and “other receivables” (P1,124,255.11).

COA said these balances were already noted in their 2009 financial statements.

“The non-moving balances and the slow collection cast doubt on the account receivable and affects the reliability of the financial statements,” COA said.

According to COA, the town accountant, who admitted that these were already in the record when he assumed post, assured that they will trace these balances and will prepare the “adjusting entries” if necessary.

The town treasurer told COA that demand letters were also sent to the borrowers resulting to the P52,000 payment last year.

With this, COA told the local government to “exert more effort” in collecting the receivables amounting to P7 million. — Liv G Campo/ATO (FREEMAN)