OUT of Tagaytay City’s P4.109 billion total assets, only 10.72 percent equivalent to P440.517 million has adequate insurance coverage against natural or man-made hazards, an audit conducted by the Commission on Audit (COA) has revealed.
Government auditors have reminded the city government that RA No. 656 or the Property Insurance Law made it mandatory for all insurable assets, properties, and interest of government agencies to be protected under the General Insurance Fund (GIF) of the Government Service Insurance System (GSIS).
On the other hand, Sections 4 and 5 of COA Circular No. 2018-002 listed insurable properties including motor vehicles, machineries, furniture/fixtures, supplies/materials, public buildings, and even properties in transit where ownership has already passed on to the government.
The same circular tasked heads of government agencies to ensure that pertinent offices and officers prepare the Property Inventory Form (PIF) which lists all insurable assets, their appraised values, appraisal date, location, and other information. The PIF must be submitted to the audit team and the GIF-GSIS not later than April 30 of every year.
COA warned that failure by agency officials to submit the required documents to the GSIS is punishable by suspension of their salaries until full compliance.
However, the audit team noted that P3.444 billion worth of buildings and structures owned by Tagaytay City are not insured, together with P358.94 million machinery and equipment, P131.346 million transportation/motor vehicles, P157.99 million furniture, fixtures and books, and P17.12 million other properties.
“Verification of the city’s [property, plan and equipment] disclosed that only a portion of the buildings and other structures and transportation equipment… equivalent to only 10.72 percent of the total insurable properties were covered by proper insurance with the GSIS,” the COA said.
Results of an inquiry conducted by auditors pointed to the failure of the City General Services Office to prepare the PIF.
“Thus, uninsured properties of P3,668,656,212.21 did not have adequate and reliable financial protection against any damage to or loss of its properties due to fire, earthquake, storm, and other fortuitous events,” the COA pointed out.
The city government informed auditors that its preparation of the inventory of all insurable properties is already underway.
