GOVERNMENT auditors have found two bank accounts maintained by the National Electrification Administration (NEA) at different state-owned banks that were not listed in the its financial books.
The audit team said it got wind of the existence of the ank deposits through bank confirmation letters received from the Development Bank of the Philippines (DBP) and the United Coconut Planters Bank (UCPB).
As of December 31, 2020, records obtained by auditors showed the DBP — NEA SSD (special savings deposit) 06 account held P200 million, while a savings account at the UCPB held P90,664,845.29.
“Both savings accounts were not reflected in the NEA’s books at year-end and no subsidiary ledgers were found for these two accounts,” the audit team said.
On the other hand, a third bank account that was listed in NEA’s book as DBP — NEA SSD 03 with deposits amounting to P200,653,003.71 was not confirmed by the depository bank.
Called out about these findings, the NEA management instructed its accounting division to record the P200 million DBP account and the P90.665 million UCPB account.
The division was likewise directed to start verification work on the P200.653 million deposit at DBP that the depository bank did not confirm.
In its reply to the audit findings, the NEA said it has started taking up the unrecorded balances of the DBP accounts as of May 25, 2021 and the UCPB account on April 1, 2021.
It explained that most of the unrecorded amounts that caused the understatement in its books pertaining to bank balances involved various online deposits from electric cooperatives as well as interest income earned.
The Commission on Audit has ordered the preparation of monthly bank reconciliation statements for each of the agency’s 27 accounts that must include a recording of all bank transactions and adjustment of balances in a timely manner.
The COA reminded the NEA that under the International Public Sector Accounting Standards (IPSAS), it is required to make a fair presentation of its financial position, performance, and cash flows which entails accurate reporting of transactions affecting its assets, liabilities, revenue, and expenses.
