Balance Per
Bank Balance Per
Account No. Bank Difference
Name Books
Confirmation
LBP 0292-1095-39 46,581.27 46,404.57 176.70
LBP 0292-1132-42 1,393,022.56 1,396,217.56 (3,195.00)
LBP 0292-1132-50 0.00 10,000.00 (10,000.00)
Special Education Fund (SEF)
LBP 0292-1036-38 26,869,271.24 27,332,054.77 (462,783.53)
Total ₱ 377,342,597.04 ₱ 384,790,648.08 ₱ (7,448,051.04)
4.3 Of the total discrepancies computed above, outstanding checks totaling
₱4,379,510.24 shall be deducted from the balance reflected in the Bank
Confirmation, resulting in a net amount of ₱(3,068,540.80).
4.4 Review of the BRS submitted by the Municipal Accountant showed that the Cash
in Bank balances were adjusted to reflect the correct amount. However, our
verification of the Cash in Bank account’s Subsidiary Ledger (SL) balances
revealed that not all book reconciling items presented in the BRS were recorded
as adjustments during the year, as shown below:
Book Reconciling Items GF TF SEF Total
Additions to Cash in
₱5,544,064.43 ₱18,691.55 ₱308,751.27 ₱5,871,507.25
Bank Balance
Deductions from Cash in
4,851,216.42 3,738.31 0.00 4,854,954.73
Bank Balance
Book Reconciling Items
Recorded
Additions to Cash in
71,086.58 0.00 308,751.27 379,837.85
Bank Balance
Deductions from Cash in
₱ 930,008.93 ₱ 0.00 ₱ 0.00 ₱ 930,008.93
Bank Balance
4.5 As shown in the table above, only ₱379,837.85 worth of book reconciling items
were recorded as debits to the Cash in Bank balance, out of the ₱5,871,507.25
listed as additions in the BRS for the year. Additionally, only ₱930,008.93 were
recorded as credits to the Cash in Bank balance, out of the ₱4,854,954.73 reported
as deductions in the BRS for the same period.
4.6 Our interview with the Municipal Accountant revealed that not all reconciling
items requiring adjusting entries in the Municipality’s books were recorded during
the year because they are still tracing the amounts and retrieving the supporting
documents for the reconciling items.
4.7 As a result of the foregoing, the Cash in Bank balance presented in the financial
statements is inaccurate and unreliable.
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