After finding ‘misstatements’, COA tells NPC to improve financial efficiency

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In its latest annual audit report, the Commission on Audit (COA) has admonished the National Privacy Commission (NPC) to improve its financial and operational efficiency, as well as the reliability of its financial statements.

03-NPC2020_Executive_Summary

The COA made the recommendation after it found “misstatements” in the NPC’s record pertaining to national government agencies, office supplies inventory, and furniture and fixtures for the year 2020.

A misstatement occurs when something has not been treated correctly in the financial statements, meaning that the applicable financial reporting framework, has not been properly applied.

The budget of the NPC for 2020 was P208.58 million.

Based on COA’s report, misstatements in due from national government agencies, office supplies inventory, and furniture and fixture accounts amounted to P1,736,676.84, which represented 2.58% of the total assets of the agency

COA also found misstatement in the accumulated surplus (deficit) account in the amount of P646,094.36, representing 1.19% of the total net assets, which resulted in the over or understatements of the affected accounts.

The audit report said that the misstatements in the various accounts negatively affected NPC’s assertions as to the accuracy, completeness, cut-off, and valuation of these accounts.

In the audit review, it was found out that there were unrecorded charges in the agency’s fund amounting to P724,691.78, erroneous recording of adjusting entry in the amount of P141,352.58, unrecorded delivered inventories at P325,041.24, and under-recording of deliveries amounting to P300.

Meanwhile, the audit revealed that five of fire-proof vaults with a total cost of P219,950 delivered and accepted by NPC on August 20, 2020 were not recorded in the books of accounts.

However, there were no audit suspensions, disallowances, and charges found in the audit of NPC’s various transactions as of December 31, 2020.

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