COA: Less than 1% of P2.56B assets of Bulacan State University insured

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GOVERNMENT auditors have expressed concern regarding the lack of insurance coverage for Bulacan State University’s (BulSU) properties, which have a total value of P2.564 billion.

In its 2023 report on the state university, the Commission on Audit (COA) said only motor vehicles worth P21.28 million have been insured with the Government Service Insurance System (GSIS).

Based on the list of assets BulSU provided in the audit report, the uninsured properties include school buildings worth P1.416 billion; technical and scientific equipment, P397.79 million; information and communications technology equipment, P334.17 million; other machinery and equipment, P192.37 million; medical equipment, P38.77 million; and office equipment, P38.67 million.

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“Only P21.277 million or 0.83 per cent of the total insurable Property, Plant and Equipment in the aggregate amount of P2.564 billion were covered with insurance,” the COA warned, saying it exposes “the University to the risk of not being indemnified or compensated for any damage to, or loss of its property in case of destruction thereof through fire, flood or other force majeure.”

The audit team reminded BulSU management that insurance coverage for government properties under the GSIS is mandated by the Property Insurance Law or RA No. 656.

Likewise, university officials were told to prepare and submit a Property Inventory Form (PIF) in compliance with COA Circular No. 2018-002. The form is used as a basis for the assessment of the general insurance coverage of all insurable assets under the GSIS.

“We recommended that Management instruct the Asset Management Office to coordinate with the System Accounting Office to facilitate the identification of insurable properties which are not yet covered by insurance,” the audit team said.

According to the university accountant, the Assets Management Office is listing the carrying values of the insurable assets as required by the GSIS. It added that the service of an independent appraiser has been tapped to determine the value of the assets.

The university’s Budget Office assured the audit team that BulSU has available funds to cover the cost of insuring the university’s assets.

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