MANILA, Philippines – Properties worth P2.58 billion in Cauayan City, Isabela are not covered by state insurance, the Commission on Audit (COA) found.
This is in violation of Republic Act No. 656 or the Property Insurance Law, which requires local governments below first class to have their properties insured. Government auditors warned that without adequate insurance coverage, there would be no indemnification if any of their assets were lost or damaged because of accidents or calamities.
The audit team notified the office of City Mayor Caesar Dy Jr. upon sending a copy of their 2023 audit report on April 15, 2024.
A disbursement voucher review showed that the LGU only paid P639,350 in property insurance costs in 2023.
“This insurance covered only some of the motor vehicles, equipment and other properties owned by the City. Review of the Financial Statements and other pertinent reports as of December 31, 2023 showed that several PPE items with total book value of P2,577,898,273.63 were not covered by insurance,” state auditors said.
The city government’s uninsured assets include:
State auditors recommended that the city’s Inventory Committee start working with the Property Officer to come up with a completed Property Inventory Form.
The City General Services Office told the auditors in a letter dated February 15, 2024 that it is already working on completing the list of insurable properties so that they can be covered by the Government Service Insurance System (GSIS) General Insurance Fund.
Meanwhile, COA also flagged the city government’s failure to include their Daily Time Records (DTRs) that should have been submitted along with the disbursement vouchers for the salaries of their contractual employees, which totaled P74.623 million in 2023.
Government agencies are required by the COA and the Civil Service Commission to submit records or proof that contractual or non-permanent hires work the required hours as stipulated in their contracts.
“Review of various payrolls for the payment of salaries of casual employees revealed that approved DTRs and accomplishment reports were not attached in the disbursement of vouchers,” state auditors noted.
While the LGU uses biometrics to record attendance, the system-generated records were not furnished to employees. This prevented them from confirming their attendance.
City officials told the COA that they will be adjusting their cutoff period for payroll preparation so they can comply with government requirements in the future. – Rappler.com
