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COA chides Capitol over hospitals account

CEBU, Philippines – The Commission on Audit has chided the Cebu provincial government for lack of proper turnover of property and accounts of district hospitals that were devolved to the cities of Mandaue and Lapu-Lapu.

 State auditors noted that the Capitol’s continued keeping of the hospital properties and accounts in its book is contrary to the Memorandum of Agreement entered into by the provincial government and the two local government units in December 2007 and January 1999.

According to the COA, the present property and accounts of Lapu-Lapu District Hospital, Mandaue District Hospital, and Sta. Rosa District Community Hospital should not have been in the books of the provincial government pursuant to the memorandum of agreement.

The MOA between the Capitol and the Lapu-Lapu District Hospital and Sta. Rosa Community Hospital (in Olango Island) states that any collectibles due and demandable relative to the operation of the hospitals before January 1, 2008 shall be for the account of the province.

The occurring collectibles and demandable past the said date will be under the Lapu-Lapu City government. COA also cited the same issue with the Mandaue City Hospital.

The provincial government, however, through the provincial accountant explained that the transfer of all the hospital services to the cities of Mandaue and Lapu-Lapu are “subject for negotiation.”

Freeman ( Article MRec ), pagematch: 1, sectionmatch:

“Transfer of the buildings, improvements, facilities, equipment and other appurtenances in these hospitals are still subject for negotiation as regards the transfer of cost or consideration , hence, the accounts are still in their books,” COA quoted the provincial government’s explanation.

COA suggested that the provincial government should look into the accounts such as the receivables, drugs and medicines, medical and laboratory equipment, payables to officers and employees as these might be forgotten due to passage of time.

State auditors also called the attention of the provincial government over the delay in the remittances of premiums and contributions of employees to Government Service Insurance System, PAGIBIG, and Philhealth.

“There were also substantial payables to the Government Service Insurance System, PAG-IBIG, and Philhealth in the net amount of P586, 154.44 under the accounts which would surely affect the retirement of certain personnel and result to penalties due to delays in remittance,” COA said. (FREEMAN)


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