Information access hurdles, inaccuracies, earn MARSF adverse opinion from PLM SCOA

Significant challenges in acquiring evidence to support the financial accounts and inaccuracies were among the reasons why Medical Alliance Rendering Service to Fellowmen (MARSF) received an "adverse opinion" from the PLM Student Commission on Audit (SCOA), June 22.

Aside from the challenges in acquiring evidence and inaccuracies in the financial records, the commission cited other reasons for giving MARSF such an opinion in an audit report for the academic year 2022-2023.

These reasons are misuse of the cash disbursement journal, cash receipts journal, and all acknowledgement receipts and cash disbursement forms; failure to secure a separate bank account solely for the organization’s use; and limited further audit procedures due to improper turnover of assets from the previous year.

According to the commission, MARSF also failed to comply with the prescribed deadline for the completion of the audit procedures. 

In addition, MARSF even conducted a book sale activity without the required approval from the Vice President for Academic Affairs through a completed staff work which is considered as a violation of the applicable rules and regulations in the Student Manual and relevant memoranda issued by the Office of Student Development and Services. 

To address all of these discovered lapses, SCOA advised MARSF to record every transaction within the organization, wherein all receipts and disbursements should be kept in a separate and organized file.

The commission also recommended conducting training for its members regarding accounting principles, proper transaction recording, and the importance of accuracy in financial reporting, as well as the correct utilization of relevant documents such as the cash disbursement and cash receipt journals.

MARSF also failed to implement SCOA’s recommendation in the prior year’s audit report, which is to establish a separate GCash account solely for the organization’s use, and was even found using another organization’s account.

For this reason, SCOA encouraged MARSF anew to create an independent bank account or GCash account exclusively for the organization’s use.

Out of the 38 accredited academic organizations, MARSF and PLM ChESS were the only organizations that earned an "adverse opinion" from the commission.  which signifies that the financial statements of the body are not fairly presented in accordance with the applicable financial reporting framework.

The other 18 organizations received the highest "unqualified opinion" while the remaining 18 got a "qualified opinion".