Unpaid disaster-response expenses were incorrectly treated as already paid and moved to the unexpended balance, causing the reported trust liability for the disaster risk reduction fund to be understated.

Why It Matters

Recommended Actions

• Require the MA to (i) recogniz e in the books the correct amount of transfer to the unexpended balances of DRRMF as Trust Liabilities – DRRMF account
• And

Original Audit Finding Excerpt

"understatement of the Trust Liabilities (TL) – DRRMF by ₱3,480,000.00 due to erroneously recorded some of unpaid expenses as utilization and transferred the erroneous amount to the unexpended balance of LDRRMF under the trust fund, thus the reported balances of the Trust Liabilities-DRRMF and other affected accounts were unreliable and not fairly stated."

Source Document