Former Commissioner Heidi Mendoza shed light on the different types of audit opinions that the Commission on Audit (COA) gives to government agencies in its annual reports.
On “The Mangahas Interviews,” Mendoza explained the differences between “unqualified or clean,” “qualified,” and “adverse” audit opinions as well as the “disclaimer” given by state auditors to various agencies.
The former COA commissioner earlier described the annual audit reports as a “break-up letter” to agencies.
Unqualified opinion
An unqualified or clean opinion given to a certain government agency means that the financial statement submitted matches what the COA has audited.
“Kumbaga pag sinabi ng ahensya, ‘Meron kaming P100 million sa bangko.’ Ang titignan ng auditor tama bang may P100 million na cash sa bangko,” Mendoza said.
(If the agency tells, “We have P100 million in the bank.” The auditors will check if there really is P100 million of cash in the agency’s bank account.)
However, she said an unqualified opinion does not necessarily mean that an agency is cleared of any procurement irregularities.
“The [unqualified] opinion is merely based on the financial statement. Hindi pwedeng sabihin na ‘yung clean audit report, tama na dun ang mga irregularities na sasabihin ng ahensya, ‘hindi may opinyon na kami kaya natanggal na ‘yung mga findings sa procurement’ hindi pwede ‘yon,” she said.
(The agency cannot say that just because they have a clean opinion, all the irregularities were negated.)
The former COA commissioner said the importance of an unqualified opinion can only be used to verify the financial health of an agency when it applies for loans.
“Kung ako ang bangko, mahalaga sa akin na ang uutang ay may clean opinion. Bakit? aba makakabayad ba ang ahensyang ito,” Mendoza said.
(If I were a bank, it is important to. me that the borrower has a clean opinion. Why? Because this agency has the ability to pay.)
“Hindi pwede gamitin ang [clean] audit opinion na iwawagayway na sasabihin na free na kami sa finding on procurement irregularities,” she emphasized.
(A clean audit opinion cannot be flaunted to say that an agency is free from findings of procurement irregularities.)
Qualified opinion
A qualified opinion, on the other hand, means that the auditor has doubts on an agency’s financial statement.
For example, she said, “‘Yung account receivable hindi mo na-verify.”
“Because of that magkakaroon ng materiality level… Ito yung pamantayan kapag tinignan ulit kung hindi kayang mag issue ng clean opinion,” she added.
Nonetheless, she said a qualified opinion is still favorable because the auditor will specify the exceptions why it cannot give a clean or unqualified opinion.
Adverse opinion
An adverse audit opinion, Mendoza said, means that state auditors find that an agency’s financial statement is unbalanced.
“‘Pag sinabing adverse mukhang may hindi maipaliwanag… May nakita akong hindi tama. It does not present fairly, hindi balanse,” she said.
(When you say adverse, there is something that cannot be explained… I saw something that isn’t right. It does not present fairly, it isn’t balanced.)
Disclaimer
The former COA commissioner described a “disclaimer” given to an agency as the worst audit opinion.
Mendoza said state auditors issue a disclaimer because an agency refuses to submit financial records.
“Halimbawa tumanggi ang ahensya. Ayaw mag-submit ng voucher,” she said.
(For example, an agency declined. It does not want to submit a voucher.)
“‘Pag sinabing ayaw mo magsubmit ng voucher, ano ngayon ang opinyon na maibibigay?” she said.
(If the agency does not want to submit, what opinion can be given?)
“Nilimitahan mo yung auditor na magsagawa ng financial analysis dahil hindi ka nagbigay,” she said.
(You limited the auditor to conduct a financial analysis because you refused to submit.) —Joahna Lei Casilao/NB, GMA News
0 Comments