Republic of the Philippines

COMMISSION ON AUDIT
NATIONAL GOVERNMENT SECTOR
Cluster VI Agriculture and Environment
Quezon City

AUDIT CERTIFICATE

The Director
Bureau of Fisheries and Aquatic Resources
Quezon Avenue, Quezon City
We have audited the accompanying consolidated balance sheet of the Bureau of
Fisheries and Aquatic Resources as of December 31, 2002 and the related consolidated
statements of income and expenses and cash flows for the year ended. These statements
are the responsibility of the Bureau of Fisheries and Aquatic Resources management.
Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with laws, COA standards and applicable
generally accepted auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by the
Auditee as well as evaluating the overall financial statement presentation. We believe
that our audit provides reasonable basis for our opinion.
There is reason to believe that the financial statements are not free of material
misstatements because of the following reasons:
-

The Accounts Payable balance of P1,331,333,691.74 is unreliable because it

includes (a) undelivered goods and services amounting to P5,476,769.30
already recorded by CAR as payables; and (b) payables of P17,297,758.14
recorded by Regions VIII, XI and XII which are not supported by documents,
schedules or subsidiary ledgers.

There was failure to (a) conduct inventory of fixed assets composing the
total Property, Plant and Equipment balance of P75,752,607.03 in four (4)
regions; (b) reconcile the total difference of P364,314,743.72 between book

and inventory balances in the Head Office and Regions III, XI, VIII and X;
and (c) provide for an allowance for depreciation for fixed assets of the Head
Office and eight (8) regions totaling P321,849,510.85.
-

Overstatement of Cash and Receivable accounts by P14,037,755.37 and

P11,391,924.98 due to non-liquidation of cash advances as of year-end,
although the purpose of these advances had already been served.

In our opinion, except for the effect on the financial statements of the deficiencies
discussed in the preceding paragraph, the financial statements present fairly in all
material respects, the financial position of the Bureau of Fisheries and Aquatic Resources
as of December 31, 2002 and the results of its operations and cash flows for the year
ended in accordance with applicable laws, rules and regulations and in conformity with
generally accepted state accounting principles.

COMMISSION ON AUDIT
By:
HERMINIA S. D. AQUINO
Supervising Auditor
Department of Agriculture-NCR

February 28, 2003