THE COMMISSION on Audit (CoA) has flagged the Philippine Merchant Marine Academy’s (PMMA) financial accounts due to inconsistencies in its assets’ value and accounts receivable.
State auditors noted the school failed to provide the necessary documentation to support the P44.7 million beginning balance of its assets for 2023.
CoA also took note of PMMA’s non-reclassification of assets and fund surplus amounting to P11.7 million and P24.7 million, respectively, which bloated the school’s fund account.
The PMMA did not respond to an email asking for comment.
“The accuracy and reliability of the PPE (Property, Plant, and Equipment) account balances as of December 31, 2023 was doubtful due to unsubstantiated beginning balance of the PPE totaling ₱44,722,375.17… [and] non-reclassification of items… overstating the PPE and accumulated surplus by ₱11,724,479.45 and ₱24,770,845.04,” CoA stated in its audit report of the school.
The audit commission directed the school’s accountant to review and make “necessary adjusting entries” to the accounts to ensure a factual and accurate presentation of its financial accounts.
The PMMA is a government school training students to become commercial seafarers and auxiliary naval officers for the Philippine military or coast guard.
State auditors also flagged the misstatements in money owed to the school totaling P49.7 million, which affected CoA’s audit due to inaccuracies and balances lacking supporting documentation.— Kenneth Christiane L. Basilio